A company's income statement for FY06 contains the following information (in $ Million): It is estimated that 20% of COGS and 10% of SGA&A are Throughput Cost (vary with throughput), and the rest are Capacity Cost ( fixed with respect to throughput). The throughput is 100,000 units per year.
a. What will be the increase in profit if throughput increases by 1%?

Question

A company's income statement for FY06 contains the following information (in $ Million):  It is estimated that 20% of COGS and 10% of SGA&A are Throughput Cost (vary with throughput), and the rest are Capacity Cost ( fixed with respect to throughput). The throughput is 100,000 units per year. 
a. What will be the increase in profit if throughput increases by 1%?

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The Answer of A company's income statement for FY06 contains the following information (in $ Million):  It is estimated that 20% of COGS and 10% of SGA&A are Throughput Cost (vary with throughput), and the rest are Capacity Cost ( fixed with respect to throughput). The throughput is 100,000 units per year. 
a. What will be the increase in profit if throughput increases by 1%?

A Company's Income Statement for FY06 Contains the Following Information