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Colorado Furniture Company manufactures natural weathered reclaimed wood furniture. The company ...

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Colorado Furniture Company manufactures natural weathered reclaimed wood furniture. The company ...

Colorado Furniture Company manufactures natural weathered reclaimed wood furniture. The company produces two sizes of beds. Data for the company's activity during a typical period are presented below:

	Queen	King
Units sold	100	300
Sales price	$1,800	$2,000
Variable cost per unit	$1,080	$1,100

The company incurs $300,000 in fixed costs during the year. Assuming the sales mix is constant, what will Colorado's operating income be if sales volume increases by 10%?

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Managerial Accounting

Edition: 4^th

Author: Davis

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