What is the expected operating income for the next month? Select one:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Moon company has an average selling
price of OMR 20 per unit and an average
variable cost of OMR 13 per unit. Current
month's operating income is OMR
150,000. During the next month, the sales
is expected to decrease by 1,500 units.
What is the expected operating income
for the next month? Select one:
a. OMR 136,000
b. OMR 160,500
c. OMR 132,500
d. OMR 139,500
e. None of the answers given
The correct answer is: OMR 139,500
Transcribed Image Text:Moon company has an average selling price of OMR 20 per unit and an average variable cost of OMR 13 per unit. Current month's operating income is OMR 150,000. During the next month, the sales is expected to decrease by 1,500 units. What is the expected operating income for the next month? Select one: a. OMR 136,000 b. OMR 160,500 c. OMR 132,500 d. OMR 139,500 e. None of the answers given The correct answer is: OMR 139,500
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