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Question 6. Wood Company prepared the following income statement for 2022: Wood Company's Income Statement...

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Accounting

image Question 6. Wood Company prepared the following income statement for 2022: Wood Company's Income Statement for the year ended December 31, 2022 Required: 1. What is the company's break-even point in units? 2. How many units would the company have had to sell to earn a target net income of $200,000 in 2023 ? 3. If the company expects a 25% increase in sales volume in 2023 , what would be the expected net income in 2023? 4. How much sales (in dollars) would the company have to generate in order to earn a target net income of $220,000 in 2023 ? 5. Wood's management is considering an Option to improve net income. This Option will increase fixed expense by $50,000 while decrease variable expenses by $1 per unit. Wood's management feels that with these changes, the price of the product could be reduced by $1 per unit. This decrease in price will then result in an 10% increase in sales volume. Do you recommend this option? Why or why not

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