A manufacturing company provided the following information for May 2021: Sales 24,000 Variable costs 8,000 Fixed costs 5,000 Operating income £11,000 If sales doubled in June 2021, what was the projected operating income?

A manufacturing company provided the following information for May 2021: Sales 24,000 Variable costs 8,000 Fixed costs 5,000 Operating income £11,000 If sales doubled in June 2021, what was the projected operating income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A manufacturing company provided the following information for May 2021:

Sales 24,000

Variable costs 8,000

Fixed costs 5,000

Operating income £11,000

If sales doubled in June 2021, what was the projected operating income?

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