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Reference: 08-02
the Following Is Allison Corporation's Contribution Format Income

question 84

Multiple Choice

Reference: 08-02
The following is Allison Corporation's contribution format income statement for last month:  Sales $800,000 Less variable expenses 300,000 Contribution margin 500,000 Less fixed expenses 400,000 Net income $100,000\begin{array} { | l | c | } \hline \text { Sales } & \$ 800,000 \\\hline \text { Less variable expenses } & 300,000 \\\hline \text { Contribution margin } & 500,000 \\\hline \text { Less fixed expenses } & 400,000 \\\hline \text { Net income } & \$ 100,000 \\\hline\end{array} The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.
-If the number of units sold increases by 10%, how much will net income increase

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