Question: 14. Using a DOL for 2022 equal to 3.00, if Spencer Company expects sales to decrease 5% in 2023, by how much will the net

14. Using a DOL for 2022 equal to 3.00, if Spencer Company expects sales to decrease 5% in 2023, by how much will the net income decrease by in 2023? A. $5,000 B. $15,000 C. $20,000 D. $25,000 E. $30,000 15. Based on the cost and revenue structure on the Spencer income statement, in order to earn a target net income equal to 40% of sales, what would Spencer's sales dollars have to equal (using the Y-formula)? a. $514,286 b. $714,286 C. $814,286 d. $614,286Below is an income statement for XYZ Company as of 12/31/22: Sales (60,000 x $15) $900,000 Variable costs (60,000 x $8) (480.000) Contribution margin (60,000 x $420,000 Fixed costs (220,000) Net Income $200.000 16. How many units would XYZ need to sell to earn a net income of $270,000 after tax (income tax = 10%)? a. 66,286 b. 68,286 C. 70,286 d. 74,286 17. Using one of the short-cut tricks that you learned, assuming that XYZ increased sales by 9 percent, what would the new net income be? a. $197,800 b. $217,800 c. $237,800 d. $257,800 5

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