For the following questions, circle the best response. Answers are at the end of this chapter.
Use the following information for Question.
O’Brien, Inc.’s, 2010 contribution margin income statement shows the following:
Sales @ $8 per unit | $ 160,000 |
Less: Variable expense | (128,000) |
Contribution margin | $ 32,000 |
Less: Fixed expenses | (44,000) |
Operating income (loss) | $ (12,000) |
What would O’Brien, Inc.’s, operating income (or loss) be if fixed costs were increased by 10 percent and sales volume increased by 30 percent?
a. $1,290.
b. $2,650.
c. $(6,800).
d. $(9,680).
e. None of the above.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.