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

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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