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Business
Accounting
Sales revenue (2,000 units * $50 per unit)  $100,000  Cost of goods sold:         Variable (2,000 units * $15 per unit)  (30,000)       Fixed  (11,000)  Gross Margin  59,000  Administrative Salaries   (20,000)  Sales office Depreciation  (9,000)  Sales supplies (2,000 units *$5 per unit)  (10,000)  Net Income  $20,000

Sales revenue (2,000 units * $50 per unit)  $100,000  Cost of goods sold:         Variable (2,000 units * $15 per unit)  (30,000)       Fixed  (11,000)  Gross Margin  59,000  Administrative Salaries   (20,000)  Sales office Depreciation  (9,000)  Sales supplies (2,000 units *$5 per unit)  (10,000)  Net Income  $20,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4BE
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Sales revenue (2,000 units * $50 per unit) 

$100,000 

Cost of goods sold: 

 

     Variable (2,000 units * $15 per unit) 

(30,000) 

     Fixed 

(11,000) 

Gross Margin 

59,000 

Administrative Salaries 

 (20,000) 

Sales office Depreciation 

(9,000) 

Sales supplies (2,000 units *$5 per unit) 

(10,000) 

Net Income 

$20,000 

 

Using the income statement above, if sales increased by 10%,  

(1) What percent will net income increase?

(2) How much will the new net income be? 

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