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 = ???
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Total Sales (1,000 units)
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$500,000
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Variable Costs
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$300,000
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Fixed Costs
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$150,000
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Tax Rate
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25%
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