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How much will net income increase

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Problem 1: The CFO of Taanish Inc. has gathered the following information: Selling price per unit is $2,500 and variable costs per unit sold are $1,550. During the year, 12,000 units were sold. Net income for the year was $6,225,000. Income taxes for the year were $750,000 and interest expense was $1,000,000. By how much will net income increase if sales increase by 12%?

a) 18.9%
b) 19.6%
c) 25.1%
d) 30.9%

Reference no: EM132887454

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