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How much will income increase if the sales go up

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How much will income increase if the sales go up by 250 units? ( ignore taxes .)

How much will income increase if the store expects sales to go up by $25,000? (ignoring taxes).

Change in net income = change in unit sales x unit CM. Since CM per unit = $200, then 250 units x $200 = ???

Change in net income = dollar change in sales x CM ratio. Change in net income = ???

Total Sales (1,000 units)

$500,000

Variable Costs

$300,000

Fixed Costs

$150,000

Tax Rate

25%

Reference no: EM131812673

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