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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:

Increase by $1,000

Increase by $8,000

Increase by $6,000

Increase by $20,000

Sales revenue minus the costs of direct materials is known as:

Conversion costs

Contribution margin

Outlay costs

Throughput

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