The Bronco Birdfeed Company reported the following information: Sales (400 cases) $100,000 Variable expenses 60,000 Contribution margin 40,000 Fixed expenses 35,000 Net operating income $5,000 How much will the sale of one additional case add to Bronco's net operating income? A) $250.00 B) $100.00 C) $150.00 D) $12.50

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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Please Provide answer of this General Accounting Question

The Bronco Birdfeed Company reported the following information:
Sales (400 cases)
$100,000
Variable expenses
60,000
Contribution margin 40,000
Fixed expenses
35,000
Net operating income $5,000
How much will the sale of one additional case add to Bronco's net operating
income?
A) $250.00
B) $100.00
C) $150.00
D) $12.50
Transcribed Image Text:The Bronco Birdfeed Company reported the following information: Sales (400 cases) $100,000 Variable expenses 60,000 Contribution margin 40,000 Fixed expenses 35,000 Net operating income $5,000 How much will the sale of one additional case add to Bronco's net operating income? A) $250.00 B) $100.00 C) $150.00 D) $12.50
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