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The following income statements are provided for two companies operating in the same industry: Felix Company Jinx Company Revenue $208,000 $208,000 Variable costs (45,760)
The following income statements are provided for two companies operating in the same industry: Felix Company Jinx Company Revenue $208,000 $208,000 Variable costs (45,760) (89,232) Contribution margin 162,240 118,768 Fixed costs (89,232) (45,760) Net income $ 73,008 $ 73,008 Assuming sales increase by $1,040, select the correct statement from the following: Multiple Choice Felix's net income will increase by $250. Only Felix will experience an increase in profit. Jinx's net income will increase by 6%. Felix's net income will be more than Jinx's.
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