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and the average fixed expense per month is $12,000. On average 2,000 tables are sold at each month. If sale ncrease by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $ 8,000 D. S ,160

and the average fixed expense per month is $12,000. On average 2,000 tables are sold at each month. If sale ncrease by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $ 8,000 D. S ,160

FINANCIAL ACCOUNTING
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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At a furniture factory, the average selling price of a table is $18, the average variable expense per table is $ 9, and the average fixed expense per month is $12,000. On average 2,000 tables are sold at each month. If sales increase by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $ 8,000 D. $ 3,160
Transcribed Image Text:At a furniture factory, the average selling price of a table is $18, the average variable expense per table is $ 9, and the average fixed expense per month is $12,000. On average 2,000 tables are sold at each month. If sales increase by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $ 8,000 D. $ 3,160
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