Multiple Choice
Murphy Company produces flash drives for computers which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During April 700 drives were sold. Fixed costs for April were $4 per unit for a total of $2800 for the month. How much does Murphy's operating income increase for each $1000 increase in revenue per month?
A) $700
B) $500
C) $14000
D) Not enough information to determine the answer.
Correct Answer:
Verified
Correct Answer:
Verified
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