Assume sales and demand are 1,000 units, how much will the company make on the sale of the next two units if demand expands to 1,002 units. Discuss which amounts on the income statement will change if the company makes and sells two more units. Please discuss your calculations and reference to Figure 1.

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 5R: Suppose the company has just the opposite news and now expects unit sales for August, September, and...
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4) Assume sales and demand are 1,000 units, how much will the company make on the sale of the next two units if demand
expands to 1,002 units. Discuss which amounts on the income statement will change if the company makes and sells two more
units. Please discuss your calculations and reference to Figure 1.
Transcribed Image Text:4) Assume sales and demand are 1,000 units, how much will the company make on the sale of the next two units if demand expands to 1,002 units. Discuss which amounts on the income statement will change if the company makes and sells two more units. Please discuss your calculations and reference to Figure 1.
Sales
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
Total at 2,000 UnitⓇer Unit
800,000
321,000
479,000
182,000
279,000
400
160.50
239.50
Transcribed Image Text:Sales Variable Costs Contribution Margin Fixed Costs Operating Income Total at 2,000 UnitⓇer Unit 800,000 321,000 479,000 182,000 279,000 400 160.50 239.50
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