Multiple Choice
Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000?
A) $8,000 increase
B) $8,000 decrease
C) $30,000 decrease
D) $30,000 increase
Correct Answer:
Verified
Correct Answer:
Verified
Q120: Match the following terms with their definitions.<br>-Remain
Q121: If direct materials cost per unit decreases,
Q122: Which of the following is not an
Q123: If sales are $425,000, variable costs are
Q124: Atlantic Company sells a product with a
Q126: Match the following terms with their definitions.<br>-The
Q127: Reynold's Grocery has fixed costs of $350,000,
Q128: Which of the following is not an
Q129: In an absorption costing income statement, the
Q130: Rental charges of $40,000 per year plus