Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000, and current sales are 9,800 units. How much will operating income change if sales increase by 5,300 units? O a $100,700 increase Ob. $186,200 increase Oc. $186,200 decrease O d. $286,900 increase

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000, and current sales are 9,800 units. How much will operating income change if sales
increase by 5,300 units?
O a. $100,700 increase
O b. $186,200 increase
O c. $186,200 decrease
O d. $286,900 increase
Transcribed Image Text:Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000, and current sales are 9,800 units. How much will operating income change if sales increase by 5,300 units? O a. $100,700 increase O b. $186,200 increase O c. $186,200 decrease O d. $286,900 increase
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