Question
. UniformProducts has the following information available for the month of March: Sales (4,000 units) $40,000 Variable costs 18,000 Fixed costs 5,000 Net income $17,000
. UniformProducts has the following information available for the month of March:
Sales (4,000 units) $40,000
Variable costs 18,000
Fixed costs 5,000
Net income $17,000
The company's manager is considering several options to increase net income. By what amount do sales dollars need to increase in order for net income to increase to $25,000?
A. $14,545
B. $25,000
C. $3,000
D. $18,820
1. If sales revenue stays the same but the contribution margin ratio decreases, then:
A. net income will increase.
B. fixed costs will decrease.
C. net income will decrease.
D. fixed costs will increase.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started