Determine how much increase in income is expected


Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of $ 500,000 per year (50,000 units at $ 10 each). The fixed costs are $80,000 per year and inventory levels are declining. If sales increase by 10,000 units in the coming year, how much increase in income is expected?

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Accounting Basics: Determine how much increase in income is expected
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