Answered: If sales reduce to half of the amount…

If sales reduce to half of the amount in the next month, what is the projected operating income? Select one: a. $6,000 b. $15,000 c. $3,000 d. $16,000

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

Eigen Manufacturing Corp. provided the following information for last month:

Sales $40,000

Variable costs 14,000

Fixed costs 10,000

Operating income $16,000

If sales reduce to half of the amount in the next month, what is the projected operating income?

Select one:

a. $6,000

b. $15,000

c. $3,000

d. $16,000

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