operating income will increase by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![2. Taco Ltd. sells microchips during the recruiting seasons. During the
current year, 11,000 microchips were sold resulting in £440,000 of
sales revenue, £110,000 of variable costs, and £48,000 of fixed costs.
If sales increase by £60,000, operating income will increase by
(5 marks)
A) £10,000
B) £40,000
C) £45,000
D) £60,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7e2111d-fe22-4ce9-bd46-1bfc7c7e7d4a%2F8d8025ec-d730-4b91-ae5e-a9373a6b944e%2Fdbfwkqq_processed.png&w=3840&q=75)
Transcribed Image Text:2. Taco Ltd. sells microchips during the recruiting seasons. During the
current year, 11,000 microchips were sold resulting in £440,000 of
sales revenue, £110,000 of variable costs, and £48,000 of fixed costs.
If sales increase by £60,000, operating income will increase by
(5 marks)
A) £10,000
B) £40,000
C) £45,000
D) £60,000
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