The income statement for Thomas Manufacturing Company for 2011 is as follows:
- If sales increase by 1,000 units, what will happen to profit?

Name: The income statement for Thomas Manufacturing Company for 2011 is as follows: - If sales increase by 1,000 units, what will happen to profit?
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

The income statement for Thomas Manufacturing Company for 2011 is as follows: 
- If sales increase by 1,000 units, what will happen to profit?

Quizplus · Accepted Answer

If sales increase by 1,000 units, the profit will increase by $4,800. This is because the contribution margin per unit is $4.80, so an increase of 1,000 units will result in an increase in profit of $4,800.

The Income Statement for Thomas Manufacturing Company for 2011 Is