Operating income change, Salter Inc.'s unit selling price

Operating income change

Reference no: EM13121947

Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units?

a. $150,000 decrease

b. $175,000 increase

c. $75,000 increase

d. $150,000 increase

Reference no: EM13121947

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