Question: 2 3 4 S 6 B 9 10 11 ssignment #3 G H H2O water softener company has the opportunity to purchase a new
2 3 4 S 6 B 9 10 11 ssignment #3 G H H2O water softener company has the opportunity to purchase a new water distillery that will help them reduce their variable costs by $2 per unit. The purchase of the distillery will increase fixed costs by 15%. The following contribution margin income statement was prepared by H2O for the month of September. H2O had the following income statement for the year ended 2022: H20 Contribution Margin Income Statement 12 For the Year Ended December 31, 2022 13 Sales ($75 per unit @1500 units). $ 112,500 14 15 Variable costs ($15 per unit @1500 units) Contribution Margin $ 22,500 $ 90,000 16 Fixed Costs $ 40,000 17 Net Income S 50,000 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 22 Assuming H20 will purchase the equipment and their sales volume will remain unchanged, prepare a projected contribution margin income statement. H20 Contribution Margin Income Statement
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