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Wesleys income statement is as follows: Sales (10,000 units) $80,000 Less variable costs - 48,000 Contribution margin $32,000 Less fixed costs - 24,000 Net income
Wesleys income statement is as follows: Sales (10,000 units) $80,000 Less variable costs - 48,000 Contribution margin $32,000 Less fixed costs - 24,000 Net income $ 8,000 If sales increase by $20,000, profits will:
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| Increase by $1,000 |
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| Increase by $8,000 |
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| Increase by $6,000 |
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| Increase by $20,000 |
Sales revenue minus the costs of direct materials is known as:
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| Conversion costs |
|
| Contribution margin |
|
| Outlay costs |
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| Throughput |
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