[rrusche]

Wilson Company makes hockey sticks. The costs and prices for the sticks are: Selling Price--$23.00 per stick; Variable Costs: Production--$11.00 per stick, Selling--$2.00 per stick; Fixed Costs: Production--$900,000 per year, Selling and Admin$540,000 per year. Assume that Wilson produced 300,000 units for the year and sold 250,000. There was no beginning inventory, and all costs were incurred as expected. How much higher would variable costing income have been if Wilson had produced 400,000 sticks instead of 300,000? Assume that sales are still 250,000 units.

[ScottGem]

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