Mazoon Company has fixed costs of $15,000 and a breakeven point of 600 units. If the company plans to produce 750 units, and sales increase by 10%, its operating income will increase by: O a. 60% Ob. 50% C. None of the given answers d. 20% O e. 30%

Mazoon Company has fixed costs of $15,000 and a breakeven point of 600 units. If the company plans to produce 750 units, and sales increase by 10%, its operating income will increase by: O a. 60% Ob. 50% C. None of the given answers d. 20% O e. 30%

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

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Mazoon Company has fixed costs of $15,000 and a breakeven point of 600 units. If the company plans
to produce 750 units, and sales increase by 10%, its operating income will increase by:
O a. 60%
O b. 50%
O c. None of the given answers
O d. 20%
O e. 30%
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