Question

Willis Company made a $280,000 investment in new machinery. Assuming the company's margin is 7%, what income will be earned if the investment generates $570,000 in additional sales

Answer 1

the income earned is $39,900

Step-by-step explanation:

The computation of the income earned is shown below:

As we know that

Margin (%) = Income earned ÷ Sales revenue

Therefore,

Income earned = Additional sales Margin percentage

= $570,000 × 7%

= $39,900

hence, the income earned is $39,900

We simply applied the above formula so that the correct value could come

And, the same is to be considered