Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what percentage would you expect net operating income to increase? O 2 O none of the above O 6 O 3 O 4
Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what percentage would you expect net operating income to increase? O 2 O none of the above O 6 O 3 O 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Sales (20,000 units @ 60 per unit) $1,200,000
Less: Variable cost 20,000@ $45 900,000
Contribution margin 300,000
Less fixed cost 240,000
Net income 60,000
Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what
percentage would you expect net operating income to increase?
O 2
O none of the above
O 6
O 3
O 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e5d482e-0d5f-4b1b-87ff-82aaa8ee724a%2F622d6db5-53b6-44fc-8e2d-da5ec344c604%2Fbyg5vxt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sales (20,000 units @ 60 per unit) $1,200,000
Less: Variable cost 20,000@ $45 900,000
Contribution margin 300,000
Less fixed cost 240,000
Net income 60,000
Assume that through a more intensive effort by the sales force the company's sales increase by 8 percent next year. By what
percentage would you expect net operating income to increase?
O 2
O none of the above
O 6
O 3
O 4
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