Problem based on net income


Haywood Inc. has the following information available for one of its products:

Sales price per unit $15
Contribution margin ratio 60%
Total fixed costs $5,000
Units produced and sold 1,000

If Haywood sells one more unit, net income will:

a. increase by $4

b. increase by $6

c. increase by $9

d. increase by $15

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Accounting Basics: Problem based on net income
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