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Data for Capitol Suppliers are shown below. Total Sales (1.500 units) $750,000 Less Variable Costs $525,000 Contribution Margin $225,000 Less Fixed Costs $150,000 Net Operating Income $75,000 The company sells Whiteboard sets to Government and Private schools. Management is considering reducing the selling price by 10%. This will cause a 15% increase in sales. Which one of the following would be the net operating income if the changes were made? Select one: CA. $75,000 B. $101,250 OC $22,500 OD. ($27,500)

Data for Capitol Suppliers are shown below. Total Sales (1.500 units) $750,000 Less Variable Costs $525,000 Contribution Margin $225,000 Less Fixed Costs $150,000 Net Operating Income $75,000 The company sells Whiteboard sets to Government and Private schools. Management is considering reducing the selling price by 10%. This will cause a 15% increase in sales. Which one of the following would be the net operating income if the changes were made? Select one: CA. $75,000 B. $101,250 OC $22,500 OD. ($27,500)

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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Data for Capitol Suppliers are shown below. Total Sales (1.500 units) $750,000 Less Variable Costs $525,000 Contribution Margin $225,000 Less Fixed Costs $150,000 Net Operating Income $75,000 The company sells Whiteboard sets to Government and Private schools. Management is considering reducing the selling price by 10%. This will cause a 15% increase in sales. Which one of the following would be the net operating income if the changes were made? Select one: CA. $75,000 B. $101,250 OC $22,500 OD. ($27,500)
Transcribed Image Text:Data for Capitol Suppliers are shown below. Total Sales (1.500 units) $750,000 Less Variable Costs $525,000 Contribution Margin $225,000 Less Fixed Costs $150,000 Net Operating Income $75,000 The company sells Whiteboard sets to Government and Private schools. Management is considering reducing the selling price by 10%. This will cause a 15% increase in sales. Which one of the following would be the net operating income if the changes were made? Select one: CA. $75,000 B. $101,250 OC $22,500 OD. ($27,500)
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