Find what would the new net income be

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Reference no: EM132713742

Below is an income statement for Tori Spelling Company:

Sales (40,000 x $10) $400,000

Variable costs (40,000 X $2.50) 1 100,000)

Contribution margin (40,000 x ?) $300,000

Fixed costs 150,000) Net Income $250,000

Problem 1: Go back to the original data, and using the other short-cut trick that you learned, assumming that Tori Spelling increased the sales price by 20 percent, what would the new net income be?

a. $300,000

b. $3 10,000

c. $330,000

d. $350,000

Reference no: EM132713742

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