Sales Revenue (2.900 units * $20 sales price) Total Variable Expennes (2.900 $10 per unit)...
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Sales Revenue (2.900 units * $20 sales price) Total Variable Expennes (2.900 $10 per unit) Contribution Margin Fixed Expenses Net Income $ 58,000 (29.000) 29.000 114,500) $ 14,500 The Company is experimenting with new engineering techniques and believes it can reduce variable cost to $8.0 per unit and significantly improve the product. The innovations would double fixed costs but the company expects to be able to increase sales to 4,300 units. If this strategy is pursued the company's budgeted net income will: Multiple Chore increase by $22,600 Increase by $3100 decrease by 57300
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