Multiple Choice
Murphy Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $8 of variable costs to make.During April, 700 drives were sold.Fixed costs for April were $4 per unit for a total of $2,800 for the month.How much does Murphy's operating income increase for each $1,000 increase in revenue per month?
A) $600
B) $400
C) $14,000
D) Not enough information to determine the answer.
Correct Answer:
Verified
Correct Answer:
Verified
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