By how much will net operating income change

Reference no: EM13824537

Problem-

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $5 per unit, and the fixed expenses total $40,200 per period. By how much will net operating income change if sales are expected to increase by $46,000?

a. $5,800 increase

b. $17,200 decrease

c. $23,000 increase

d. $31,700 increase

Additional information-

This problem relates to Basic Accounting and it discuss about calculation of net operating income change with increase in sales.

Reference no: EM13824537

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