USE THE FOLLOWING INFORMATION FOR THE NEXT 3 QUESTIONS: Below is an income statement for...
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USE THE FOLLOWING INFORMATION FOR THE NEXT 3 QUESTIONS: Below is an income statement for Tori Spelling Company: Sales (40,000 x $10) Variable costs (40,000 x $2.50) Contribution margin (40,000 x ?) Fixed costs Net Income $400,000 (100.000) $300,000 (50.000) S250.000 How many units would Tori Spelling need to sell to eam a net income of $40,000 after tax (income tax -60%)? a. 27,500 b. 20,000 c. 12,000 d. 15,555 22. Using one of the short cut tricks that you learned, assuming that Tori Spelling increased sales by 20 percent, what would the new net income be? a $300,000 b. $310.000 c. $330,000 d. $360,000 23. Go back to the original data, and using the other short-cut trick that you learned, assuming that Tori Spelling increased the sales price by 20 percent, what would the new net income be? a. $300,000 b. $310,000 c. $330,000 d. S360,000
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