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Moylan Roofing Company has provided the following information:Sales revenue$779,000Variable ...

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Moylan Roofing Company has provided the following information:Sales revenue$779,000Variable ...

Moylan Roofing Company has provided the following information:

Sales revenue   $779,000
Variable costs   506,000
Fixed costs   216,000

Which of the following statements is true, if the sales volume increases by 10%?
A) Fixed expenses will increase by $21,600.
B) Contribution margin will increase by $77,900.
C) Operating income will increase by $27,300.
D) Operating income will increase by $50,600.

Textbook

Horngren's Financial & Managerial Accounting, The Financial Chapters

Edition: 5^th

Authors: Miller-Nobles, Mattison, Matsumura

Read 480 times

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7 years ago

This was certainly a tough question, loving the expertise

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