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aswizzlebizzle aswizzlebizzle
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5 years ago
Tally Corp. sells software during the recruiting seasons. During the current year, 10,000 software packages were sold resulting in $470,000 of sales revenue, $130,000 of variable costs, and $48,000 of fixed costs.

If sales increase by $80,000, operating income will increase by ________. (Round interim calculations to two decimal places and the final answer to the nearest whole dollar.)
A) $30,588
B) $32,000
C) $48,000
D) $57,872
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
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wrote...
#1
5 years ago
 D
Explanation:  Price = $470,000 / 10,000 = $47.00
Sales in software packages = $80,000 / $47.00 = 1,702.13 software packages
Operating income increase = 1,702.13 software packages  $34.00 per = $57,872
wrote...
#2
5 years ago
This helps so much, thank you for responding so quickly...
wrote...
#3
5 years ago
No worries, I was online and bored Grinning Face with Smiling Eyes
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