Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operatingincome change if sales increase by 5,400 units?Oa. $228,200 increaseOb. $152,600 increaseOc. $152,600 decreaseOd. $75,600 increase

Operating Income A company's gross income, which is equal to total revenue less cost of products…

Answered: Spice Inc.'s unit selling price is $50,…

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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Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $6,000. By what amount will net income increase? $6,000 $4,000 $2,000 $0
Unit VI question 11 part A
O e. Sales - variable expenses + profit = fixed expenses For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $210,000 for the financial year ending 2021, assuming variable costs are $50 per unit, total fixed costs are $90,000, and the unit selling price is $65? a. 14,000 units Ob. 6,000 units Oc. 20,000 units O d. 6,000 units OUS PAGE NEXT PAGE 16
Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 111,000 Net operating income $ 69,000 If the selling price per unit increases by 10% and unit sales drop by 5%, then the best of estimate of the new net operating income is: Multiple Choice $77,400. $82,200. $153,200. $88,500.
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Nn1.

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Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? Oa. $228,200 increase Ob. $152,600 increase Oc. $152,600 decrease Od. $75,600 increase