12. (4 points) Pacific Manufacturing Sales Variable costs Fixed costs Operating income provided the following information for last month: $30,000 12,000 10,000 $ 8,000 Assume Pacific operates in the relevant range. If Pacific's Sales double next month what is the projected operating income? Show your work.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please help me 

12. (4 points) Pacific Manufacturing provided the following information for last month:
Sales
Variable costs
Fixed costs
Operating income
$30,000
12,000
10,000
$8,000
Assume Pacific operates in the relevant range. If Pacific's Sales double next month what is the
projected operating income? Show your work.
Transcribed Image Text:12. (4 points) Pacific Manufacturing provided the following information for last month: Sales Variable costs Fixed costs Operating income $30,000 12,000 10,000 $8,000 Assume Pacific operates in the relevant range. If Pacific's Sales double next month what is the projected operating income? Show your work.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education