Ans : B) Increase by $4850
| Billing Company Budgeted Income Statement (after adopting proposed new engineering technique) | ||
| Particulars | Per Unit ($) | $ |
| Sales Revenue (3500 units) | 14 | 49000 |
| Total variable cost(3500 units) | 4.5 | 15750 |
| Contribution | 9.5 | 33250 |
| Fixed expenses | (20000) | |
| Net Income | 13250 | |
| Net income before adoption of new technique (given) | 8400 | |
| Increase in net income | 4850 | |
13) Billings Company has developed the following budgeted income statement: Sales Revenue (2,300 units x $14...
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