Sales revenue (2,000 units * $50 per unit) $100,000 Cost of goods sold: Variable (2,000 units...

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Sales revenue (2,000 units * $50 per unit) $100,000 Cost of goods sold: Variable (2,000 units * $20 per unit) (40,000) Fixed (9.000 Gross Margin 51,000 Administrative Salaries (13,000) Sales office Depreciation (4,000) Sales supplies (2,000 units *$3 per unit) (6,000 Net Income $28,000 Using the income statement above, if sales increased by 20%, (1) What percent will net income increase by? (2) How much will the new net income be? Sales revenue (2,000 units * $50 per unit) $100,000 Cost of goods sold: Variable (2,000 units * $20 per unit) (40,000) Fixed (9.000 Gross Margin 51,000 Administrative Salaries (13,000) Sales office Depreciation (4,000) Sales supplies (2,000 units *$3 per unit) (6,000 Net Income $28,000 Using the income statement above, if sales increased by 20%, (1) What percent will net income increase by? (2) How much will the new net income be?

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To calculate the impact of a 20 increase in sales on net income based on the given inco... View the full answer