Mazoon Company has fixed costs of $10,000 and a breakeven point of 500 units. If the company plans to produce 700 units, and sales increase by 10%, its operating income will increase by: O a. 25% O b. 15% C. 60% d. None of the given answers e. 35%

Mazoon Company has fixed costs of $10,000 and a breakeven point of 500 units. If the company plans to produce 700 units, and sales increase by 10%, its operating income will increase by: O a. 25% O b. 15% C. 60% d. None of the given answers e. 35%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Question

15..

Mazoon Company has fixed costs of $10,000 and a breakeven point of 500 units. If the company
plans to produce 700 units, and sales increase by 10%, its operating income will increase by:
a.
25%
b. 15%
C. 60%
d. None of the given answers
e. 35%

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