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The Sales are $98,000. The Variable Costs are $42,000. The Fixed Costs are $21,000. Calculate the operating break-even in sales dollars. If the Sales increase by 28%, the Operating Income will: a. increase by 28%. b. decrease by 42.4%. c. decrease by 28%. d. increase by 42.4%.

The Sales are $98,000. The Variable Costs are $42,000. The Fixed Costs are $21,000. Calculate the operating break-even in sales dollars. If the Sales increase by 28%, the Operating Income will: a. increase by 28%. b. decrease by 42.4%. c. decrease by 28%. d. increase by 42.4%.

FINANCIAL ACCOUNTING
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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The Sales are $98,000. The Variable Costs are $42,000. The Fixed Costs are $21,000. Calculate the operating break-even in sales dollars. If the Sales increase by 28%, the Operating Income will: a. increase by 28%. b. decrease by 42.4%. c. decrease by 28%. d. increase by 42.4%.
Transcribed Image Text:The Sales are $98,000. The Variable Costs are $42,000. The Fixed Costs are $21,000. Calculate the operating break-even in sales dollars. If the Sales increase by 28%, the Operating Income will: a. increase by 28%. b. decrease by 42.4%. c. decrease by 28%. d. increase by 42.4%.
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