These following details were supplied by Eigen Manufacturing Corp. over the previous month: Sales $40,000 Variable costs 14,000 Fixed costs 10,000 Operating income $16,000 What is the anticipated operating income if sales drop to 50% in the upcoming month? A. $6,000 B. $15,000 C. $3,000 D. $16,000
These following details were supplied by Eigen Manufacturing Corp. over the previous month: Sales $40,000 Variable costs 14,000 Fixed costs 10,000 Operating income $16,000 What is the anticipated operating income if sales drop to 50% in the upcoming month? A. $6,000 B. $15,000 C. $3,000 D. $16,000
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21MC: Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month...
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Question
![These following details were supplied by Eigen Manufacturing Corp.
over the previous month:
Sales
$40,000
Variable costs
14,000
Fixed costs
10,000
Operating income
$16,000
What is the anticipated operating income if sales drop to 50% in the upcoming
month?
A. $6,000
B. $15,000
C. $3,000
D. $16,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fe0813b-566d-4ade-a893-fafc82527f1e%2Febf5f12b-b461-4da0-b9d9-7a57785a9e95%2F3fkip67_processed.jpeg&w=3840&q=75)
Transcribed Image Text:These following details were supplied by Eigen Manufacturing Corp.
over the previous month:
Sales
$40,000
Variable costs
14,000
Fixed costs
10,000
Operating income
$16,000
What is the anticipated operating income if sales drop to 50% in the upcoming
month?
A. $6,000
B. $15,000
C. $3,000
D. $16,000
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