Answered: Sales revenue $11,250,000 Variable…

Sales revenue $11,250,000 Variable expenses $6,250,000 Fixed expenses $2,500,000 Total expenses $8,750,000 Operating income $2,500,000 If sales increase by 5%, what will the new operating income be?

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

Sales revenue $11,250,000

Variable expenses $6,250,000

Fixed expenses $2,500,000

Total expenses $8,750,000

Operating income $2,500,000

If sales increase by 5%, what will the new operating income be?

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