Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increases by 5,000 units? a. $247,500 increase b. $125,000 decrease c. $75,000 increase d. $175,000 increase

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increases by 5,000 units? a. $247,500 increase b. $125,000 decrease c. $75,000 increase d. $175,000 increase

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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financial accounting

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50,
fixed costs are $170,000, and current sales are 12,000 units.
How much will operating income change if sales increases by 5,000
units?
a. $247,500 increase
b. $125,000 decrease
c. $75,000 increase
d. $175,000 increase

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