Tally Corp. sells tax software to aid individuals in completing their state and federal tax returns.  During the current year, 11,000 software packages were sold resulting in $440,000 of sales revenue, $135,000 of variable costs, and $52,000 of fixed costs. If sales increase by $100,000: Total variable costs will       Increase/decrease/stay the same  by       $   Total fixed costs will    Increase/decrease/stay the same   by       $   Operating income will       Increase/decrease/stay the same  by      $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tally Corp. sells tax software to aid individuals in completing their state and federal tax returns.  During the current year, 11,000 software packages were sold resulting in $440,000 of sales revenue, $135,000 of variable costs, and $52,000 of fixed costs.

If sales increase by $100,000:

Total variable costs will       Increase/decrease/stay the same  by       $

 

Total fixed costs will    Increase/decrease/stay the same   by       $

 

Operating income will       Increase/decrease/stay the same  by      $

 

 

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