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improvegrades improvegrades
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6 years ago
Eigen Manufacturing Corp. provided the following information for last month:

Sales$40,000
Variable costs14,000
Fixed costs10,000
Operating income$16,000

If sales reduce to half of the amount in the next month, what is the projected operating income?
A) $15,000
B) $6,000
C) $16,000
D) $3,000
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wrote...
6 years ago
 D
Explanation:  D) Projected operating income = ($40,000 / 2)  ($14,000 / 2)  $10,000 = $3,000
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