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
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
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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