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By how much will its operating income increase

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Reference no: EM133119019

Question - Arthur Company had the following data for the year just ended:

Sales 4,000 units

Sales price $60 per unit

Variable cost $18 per unit

Fixed costs $42,000

If the company's sales volume increases by 30% next year, all other factors remaining the same, by how much will its operating income increase?

a. $50,400.

b. $72,000.

c. $92,400.

d. $37,800.

Reference no: EM133119019

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