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drake34 drake34
wrote...
Posts: 320
Rep: 8 0
5 years ago
Samiera, Inc., reports the following information for September sales:

Sales$60,000
Variable costs12,000
Fixed costs16,000
Operating income$ 32,000
Promotional expenses for September were $1,000.

Required:
If sales double in October, what is the impact on the variable costs?
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wrote...
5 years ago
 The variable costs also double up to $12,000  2 = $24,000. Promotional expenses are variable costs and are already included in $12,000.
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