Sales | $100,000 |
Variable Costs | $60,000 |
Contribution Margin | $40,000 |
Fixed Costs | $30,000 |
Operating Income | $10,000 |
The above financial information was the result of selling 9,101 units. What would their new operating income be if they sold 10,588 units?
New operating income = $16,536
Working
Income statement | |
Sales (100000/9101 x 10588) | $116,338.86 |
Variable Costs (60000/9101 x 10588) | $ 69,803.32 |
Contribution Margin | $ 46,535.55 |
Fixed Costs | $ 30,000.00 |
Operating Income | $ 16,535.55 |
Fixed cost in total remains same whatever the activity level is.
Sales $100,000 Variable Costs $60,000 Contribution Margin $40,000 Fixed Costs $30,000 Operating Income $10,000 The above...
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