By how much would the companys income increase or decrease

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Reference no: EM131151353

Swisher, Incorporated reports the following annual cost data for its single product:

Normal production level	30,000 units
Direct materials	$6.40 per unit
Direct labor	$3.93 per unit
Variable overhead	$5.80 per unit
Fixed overhead	$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's income increase or decrease under variable costing?

Reference no: EM131151353

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