Kidd Corp. reports the following for 2021 on 100,000 unit sales: Sales $1,000,000 Variable costs...
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Kidd Corp. reports the following for 2021 on 100,000 unit sales: Sales $1,000,000 Variable costs 550,000 Contribution margin 450,000 Fixed costs 300,000 Net income $ 150,000 Kidd's management is proposing a 5% price increase for 2022 ($10.00 to $10.50 per unit), and it expects the resulting weaker demand for its product to result in a 7% decrease in volume (100,000 units to 93,000 units). If the price change is adopted and the assumptions are correct, Kidd's break even point (in units) will __________ in 2022, and its net income will __________ in 2022. Group of answer choices increase; increase increase; decrease decrease; decrease decrease; increase.
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