Solution-What will the outcome be for operating income

What will the outcome be for operating income

Reference no: EM132837121

A company has provided the following data:

Sales 3,000 units

Sales Price $70 per unit

Variable Cost $50 per unit

Fixed Cost $25,000

Problem 1: If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, what will the outcome be for operating income?

A) Increase by $61,000.

B) Increase by $20,000.

C) Increase by $3,500.

D) Increase by $11,000.

Reference no: EM132837121

Questions Cloud

How would increasing the depreciation period affect american : How would increasing the depreciation period affect American Movieplex's earnings? Who would be affected if Person's suggestion is followed?

Discuss the managed care accreditation process : Discuss the managed care accreditation process. Do you feel that accreditation is important for managed care organizations? Why or why not?

What is the value of the stock : A company just paid a dividend of 2.30 to its shareholders. It estimates that future growth will be at 2%. What is the value of the stock

How is age distribution related to the per capita gdp : How is age distribution related to the per capita GDP, international trade volume, and the types of products exported?

What will the outcome be for operating income : What will the outcome be for operating income? If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%

What is the impact of political and social instability : In general, what is the impact of political and social instability on non-government organizations?

Genetic modified foods do they concern you : Genetic modified foods do they concern you? Would you choose to or not to buy GMO foods for your family. Why?

What the number of units required to break even would : If the variable costs per unit were to decrease to $7.50 per unit and fixed costs increase to $450,000, the number of units required to break even would

Suitable routine for facilitating the transition of children : Explain in what ways do you foster self-help skills and independence in children during rest routines?

User Account

All Pages

What will the outcome be for operating income

Reference no: EM132837121

Reference no: EM132837121

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT