登录之后可查看解析

This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make your HOCK study materials better.
This answer results from using the amount of increase in net income before tax. The increase in net income after tax should be used instead.
The current contribution margin is $6,000,000 ($20,000,000 × .30). If sales increase by 10%, the contribution margin will increase by 10% of $6,000,000, or $600,000. Selling expense will increase by 10% of the increased sales. Sales will increase by $2,000,000 (10% of $20,000,000), so selling expense will increase by $2,000,000 × .10, or $200,000. Net income before tax will therefore increase by $600,000 ? $200,000, or $400,000. The increase in net income after tax will be $400,000 × (1 ? .35), which is $260,000. There are 2,000,000 shares outstanding, so the increased net income after tax per share will be $260,000 ÷ 2,000,000, which is $.13 per share.
This is not the correct answer. Please see the correct answer for an explanation. We have been unable to determine how to calculate this incorrect answer choice. If you have calculated it, please let us know how you did it so we can create a full explanation of why this answer choice is incorrect. Please send us an email at support@hockinternational.com. Include the full Question ID number and the actual incorrect answer choice -- not its letter, because that can change with every study session created. The Question ID number appears in the upper right corner of the ExamSuccess screen. Thank you in advance for helping us to make your HOCK study materials better.