Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what percentage would you expect net operating income to increase? O 2 O none of the above O 6 O 3 O 4
Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what percentage would you expect net operating income to increase? O 2 O none of the above O 6 O 3 O 4
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3PA
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