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If the East Division sales were 10% higher last year, by approximately how much would Tetra Pak's net operating income have increased? Assume no change in selling prices, unit variable expenses, or total fixed expenses. Multiple Choice $4,800 $32.000 $6.400 $11.200

If the East Division sales were 10% higher last year, by approximately how much would Tetra Pak's net operating income have increased? Assume no change in selling prices, unit variable expenses, or total fixed expenses. Multiple Choice $4,800 $32.000 $6.400 $11.200

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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Tetra Pak is a Swedish multinational food packaging company. In the United States, Tetra Pak operates in two sales territories, East and West. Data concerning last year's operations appear below: Sales Variable Expenses East West $320,000 $80,000 $208,000 $56,000 $24,000 $30,000 ($6,000) Contribution Margin $112,000 Traceable Fixed Expenses $48,000 Segment Margin $64,000 Tetra Pak's common fixed expenses were $25,000 last year. If the East Division sales were 10% higher last year, by approximately how much would Tetra Pak's net operating income have increased? Assume no change in selling prices, unit variable expenses, or total fixed expenses.
Transcribed Image Text:Tetra Pak is a Swedish multinational food packaging company. In the United States, Tetra Pak operates in two sales territories, East and West. Data concerning last year's operations appear below: Sales Variable Expenses East West $320,000 $80,000 $208,000 $56,000 $24,000 $30,000 ($6,000) Contribution Margin $112,000 Traceable Fixed Expenses $48,000 Segment Margin $64,000 Tetra Pak's common fixed expenses were $25,000 last year. If the East Division sales were 10% higher last year, by approximately how much would Tetra Pak's net operating income have increased? Assume no change in selling prices, unit variable expenses, or total fixed expenses.
If the East Division sales were 10% higher last year, by approximately how much would Tetra Pak's net operating income have increased? Assume no change in selling prices, unit variable expenses, or total fixed expenses. Multiple Choice $4,800 $32.000 $6.400 $11.200
Transcribed Image Text:If the East Division sales were 10% higher last year, by approximately how much would Tetra Pak's net operating income have increased? Assume no change in selling prices, unit variable expenses, or total fixed expenses. Multiple Choice $4,800 $32.000 $6.400 $11.200
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