Problem

Zona Company’s income statement for 2013 for brands A and Z and for the company as a who...

Zona Company’s income statement for 2013 for brands A and Z and for the company as a whole follows:

If brand Z’s sales increase by $25,000 and its direct fixed expenses increase by $3,000, operating income for the company as a whole would increase by

a. $875.

b. $1,167.

c. $1,750.

d. $4,167.

e. $1,900.

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