Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $80,000, and current sales are 10,000 units. How much would operating income change if sales increase by 4,000 units? a. $100,000 increase b. $40,000 increase c. $80,000 decrease d. $60,000 decrease
Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $80,000, and current sales are 10,000 units. How much would operating income change if sales increase by 4,000 units? a. $100,000 increase b. $40,000 increase c. $80,000 decrease d. $60,000 decrease
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13EA: Company A has current sales of $10,000,000 and a 45% contribution margin. Its fixed costs are...
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Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $80,000, and current sales are 10,000 units. How much would operating income change if sales increase by 4,000 units?
a.
$100,000 increase
b.
$40,000 increase
c.
$80,000 decrease
d.
$60,000 decrease
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