Sunline Corporation's revenue increased by$40,000, and its expenses decreased by $12,500.What would be the effect on net income?a. $30,000b. $52,500c. $40,000d. $65,000

Step 1: Definition of Net Income EffectNet Income Effect: Changes in revenue and expenses directly…

Answered: Sunline Corporation's revenue increased…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 29E

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Sunline Corporation's revenue increased by $40,000, and its expenses decreased by $12,500. What would be the effect on net income? a. $30,000 b. $52,500 c. $40,000 d. $65,000