The Cape Cod Cotton Candy Company had the following information available regarding last year’s operations: Sales (100,000 units)                   $200,000 Variable costs                                 100,000 Contribution margin                        100,000 Fixed costs                            50,000 Net Income                                50,000   If sales were to increase by 200 units, what would be the effect on net income? a. $400 increase b. $200 increase c. $150 increase d. $100 increase e. $200 loss

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. The Cape Cod Cotton Candy Company had the following information available regarding last year’s operations:


Sales (100,000 units)                   $200,000
Variable costs                                 100,000
Contribution margin                        100,000
Fixed costs                            50,000
Net Income                                50,000

 

If sales were to increase by 200 units, what would be the effect on net income?
a. $400 increase
b. $200 increase
c. $150 increase
d. $100 increase
e. $200 loss              

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