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What will the outcome be for operating income

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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

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