Orion Enterprises has variable costs equal to 45% of sales. The company is considering a proposal that will increase sales by $12,000 and total fixed costs by $7,000. By what amount will net income increase?
Orion Enterprises has variable costs equal to 45% of sales. The company is considering a proposal that will increase sales by $12,000 and total fixed costs by $7,000. By what amount will net income increase?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
Question
What amount will net income increase?
![Orion Enterprises has variable costs equal to 45% of sales.
The company is considering a proposal that will increase sales
by $12,000 and total fixed costs by $7,000.
By what amount will net income increase?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bec8fd7-b5b0-42d2-953a-0bed97e4d263%2Fbf509241-554c-43d1-a961-295f5a16f5dc%2F3uddf9t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Orion Enterprises has variable costs equal to 45% of sales.
The company is considering a proposal that will increase sales
by $12,000 and total fixed costs by $7,000.
By what amount will net income increase?
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