Herman's income statement is as follows:
If sales increase by 1,000 units, profits will:

Name: Herman's income statement is as follows: If sales increase by 1,000 units, profits will:
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Question

Herman's income statement is as follows:
 If sales increase by 1,000 units, profits will:

Quizplus · Accepted Answer

The unit contribution margin is the $51,000 Contribution Margin divided by 5,000 units, or $10.20 per unit. If sales increase by 1,000 units, total contribution margin and total profits will increase by 1,000 units times $10.20, or $10,200, because fixed costs will remain unchanged.

Herman's Income Statement Is as Follows