Question

A company has sales of $100,000 at the break-even point and fixed costs are $40,000. Assuming cost behaviour does not change if sales increase by $30,000 how much operating income will increase by? Multiple Choice $20,000.00 $12,000.00 $4,000.00 $8,000.00

Name: a company has sales of 100000 at the break even point and fixed costs are 40000 assuming cost behaviour does not change if sales increase by 30000 how much operating income will increase by 76303
Uploaded: 2023-02-11T01:47:53-08:00
Duration: 1 min 21 s
Channel: Brooke Bussoletti
Description: a company has sales of 100000 at the break even point and fixed costs are 40000 assuming cost behaviour does not change if sales increase by 30000 how much operating income will increase by 76303

          A company has sales of $100,000 at the break-even point and fixed costs are $40,000. Assuming cost behaviour does not change if sales increase by $30,000 how much operating income will increase by?
Multiple Choice
$20,000.00
$12,000.00
$4,000.00
$8,000.00

Added by Andrew M.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Brooke Bussoletti

02/11/2023

Step 1

Contribution margin = $100,000 - $40,000 = $60,000 Show more…

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A company has sales of $100,000 at the break-even point and fixed costs are $40,000. Assuming cost behaviour does not change if sales increase by $30,000 how much operating income will increase by? Multiple Choice $20,000.00 $12,000.00 $4,000.00 $8,000.00