LSB Company has the following income statement: Revenues $100,000 Variable Costs 40,000 Contribution Margin 60,000 Fixed Costs 30,000 Operating Income 30,000 If LSB's sales increase by $20,000, how much will the company's operating profit increase? OA. $30,000 O B. $42,000 OC. $12,000 O D. $50,000

LSB Company has the following income statement: Revenues $100,000 Variable Costs 40,000 Contribution Margin 60,000 Fixed Costs 30,000 Operating Income 30,000 If LSB's sales increase by $20,000, how much will the company's operating profit increase? OA. $30,000 O B. $42,000 OC. $12,000 O D. $50,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

LSB Company has the following income statement:
Revenues $100,000
Variable Costs 40,000
Contribution Margin 60,000
Fixed Costs 30,000
Operating Income 30,000
If LSB's sales increase by $20,000, how much will the company's operating profit increase?
A. $30,000
OB. $42,000
O C. $12,000
D. $50,000

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