Solution-What will the outcome be for operating income

What will the outcome be for operating income

Reference no: EM133119024

Question - 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

If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, what will the outcome be for operating income?

a. Decrease by $31,875.

b. Increase by $20,625.

c. Decrease by $3,125.

d. Decrease by $15,000.

Reference no: EM133119024

Questions Cloud

ADMN 2606 Business Statistics Assignment : ADMN 2606 Business Statistics Assignment Help and Solution, Nipissing University - Assessment Writing Service - understand the differences between salaries

Compute the duration and modified duration : Compute the duration and modified duration of a 6 year bond that makes annual payments with a coupon rate of 9% and a YTM of 7%.

Difference between accrual and cash-basis accounting : Explain the difference between accrual and cash-basis accounting as if you were talking to your mom (or another person that you have a deep, personal relationsh

What is the value of a similar 10-year bond : What is the value of a 1-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%? What is the value of a similar 10-year bond

What will the outcome be for operating income : The variable cost per unit increases by 15%, and all other factors remain the same, what will the outcome be for operating income

Bond portfolio management strategies : What are the two main types of passive bond portfolio management strategies?

Managing a bond portfolio : How does bond immunization work and how does that strategy differ from a cash-matching approach to managing a bond portfolio?

What is the net present value of this project : The project will cost $100,000. It will generate an after-tax net cash flow of $60,000 one year. What is the net present value of this project

Calculate gain-loss that you will realize on investment : You purchase one Apple Tree Inc July 100 call contract for a premium of $6.36. You hold the option until the expiration date when Apple Tree stock sells for $12

User Account

All Pages

What will the outcome be for operating income

Reference no: EM133119024

Reference no: EM133119024

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Find the amount paid by each of the multiple carriers

Determine the accounts receivable turnover

The vf company has produced the following information from

What amount should Bandana Company report

Prepare the consolidation journal entries

What is the relationship between inventory and cost of

Define the Four Ps of a sales plan

What is Bertha net capital gain or loss

Identify the risks for sales and cost of sales

How much will common shareholders receive

Year end income statement and classified balance

Prepare Moxey September journal entries

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT