The following is Alli Corp's contribution format income statement for last month: Sales $800,000 Variable expenses 300,000 Contribution margin 500,000 Fixed expenses 400,000 Net operating income 100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. If sales increase by 200 units, by how much should operating income increase? a. $16,000 b. $5,000 c. $2,000 d. $10,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Academic Calendar My MCBS Library English (en) -
The following is Alli Corp's contribution format income statement for last month:
Sales
$800,000
Variable expenses
300,000
Contribution margin
500,000
Fixed
expenses
400,000
Net operating income
100,000
company has no beginning or ending inventories. The company produced and sold
10,000 units last month. If sales increase by 200 units, by how much should operating
The
income increase?
a. $16,000
b. $5,000
c. $2,000
d. $10,000
Transcribed Image Text:Academic Calendar My MCBS Library English (en) - The following is Alli Corp's contribution format income statement for last month: Sales $800,000 Variable expenses 300,000 Contribution margin 500,000 Fixed expenses 400,000 Net operating income 100,000 company has no beginning or ending inventories. The company produced and sold 10,000 units last month. If sales increase by 200 units, by how much should operating The income increase? a. $16,000 b. $5,000 c. $2,000 d. $10,000
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