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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
The variable cost per unit is $40 and its total fixed cost is $450,000. How much units required to achieve $100000 target profit?
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