If sales increase by $60,000, operating income will increase by ________.

matarata

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6 years ago

If sales increase by $60,000, operating income will increase by ________.

If sales increase by $60,000, operating income will increase by ________.
A) $10,000
B) $40,000
C) $45,000
D) $60,000

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sanchezu10

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6 years ago

C
Explanation: C) Price = $440,000 / 11,000 = $40.00
Sales in softwares = $60,000 / $40.00 = 1,500 softwares
Variable cost per unit = $110,000 / 11,000 = $10.00
Operating income increase = 1,500 softwares ($40.00 - $10.00) = $45,000

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matarata Author

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6 years ago

Thanks for your help!

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