Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the dollar contribution margin per unit is inereased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, what will the outcome be for operating income? O Decrease by $11,000 O Decrease by $1,000 O Increase by $1,000 Increase by $11,000 ONone of the above

Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the dollar contribution margin per unit is inereased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, what will the outcome be for operating income? O Decrease by $11,000 O Decrease by $1,000 O Increase by $1,000 Increase by $11,000 ONone of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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