sales revenue 780,000 variable costs 507,000 fixed costs 218,000 which of the following statements is true...
sales revenue 780,000
variable costs 507,000
fixed costs 218,000
which of the following statements is true of the false volume increases by 14%.
A. Operating income will increase by $38,220
B. Operating income will increase by $ 70,980
C. Fixed assets will increase by $30,520
Homework Answers
Given
Sales revenue 780,000
variable costs 507,000
fixed costs 218,000
Solution-
Step 1.Current Operating income
- =Sales revenue-variable costs
- =780,000-507,000
- =273,000
Step 2.Operating income after volume increases by 14%.
- =Operating income*114%
- =311,220
Step 3.Increase in Operating income
- =Step 2-Step 1
- =311,220-273,000
- =38,220
Step 4.Correct answer
- A. Operating income will increase by $38,220
Add Answer to:
sales revenue 780,000
variable costs 507,000
fixed costs 218,000
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