The company's sales are $200,000, variable costs are $120,000, and fixed costs are $25,000. If sales increase by 10%, what will operating income be?

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 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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The company sales are $200000 solution this question

The company's sales are $200,000, variable
costs are $120,000, and fixed costs are $25,000.
If sales increase by 10%, what will operating
income be?
Transcribed Image Text:The company's sales are $200,000, variable costs are $120,000, and fixed costs are $25,000. If sales increase by 10%, what will operating income be?
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