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olasank [31]
3 years ago
13

Data concerning Dorazio Corporation's single product appear below:

Business
1 answer:
Reika [66]3 years ago
6 0

Answer:

30600 less 25 000 = 5600

increase in net income

Explanation

                                               1400 units                                               1000 units

sales                                       224 000                                                  160 000  

(1400*160) (1000*160)                                                                          

variable costs                   (106 400)                                                    (48 000)

(1400*76) (1000*48)                                                      

contribution margin            117 600                                                     112 000                          

fixed costs                             (87 000)                                                  (87 000)                                              

net operating income            30 600                                                   25000                              

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Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
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