The income statement for Symbiosis Manufacturing Company for the year is as follows: Sales (10,000 units) $120,000 Less: Variable expenses 72,000 Contribution margin $ 48,000 Less: Fixed expenses 36,000 Operating income $ 12,000 If sales increase by $60,000, what will happen to profit? a.increase by $24,000 b.increase by $6,000 c.increase by $60,000 d.increase by $36,000
The income statement for Symbiosis Manufacturing Company for the year is as follows: Sales (10,000 units) $120,000 Less: Variable expenses 72,000 Contribution margin $ 48,000 Less: Fixed expenses 36,000 Operating income $ 12,000 If sales increase by $60,000, what will happen to profit? a.increase by $24,000 b.increase by $6,000 c.increase by $60,000 d.increase by $36,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The income statement for Symbiosis Manufacturing Company for the year is as follows:
If sales increase by $60,000, what will happen to profit?
| Sales (10,000 units) | $120,000 |
| Less: Variable expenses | 72,000 |
| Contribution margin | $ 48,000 |
| Less: Fixed expenses | 36,000 |
| Operating income | $ 12,000 |
If sales increase by $60,000, what will happen to profit?
a.increase by $24,000
b.increase by $6,000
c.increase by $60,000
d.increase by $36,000
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