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Samiera,Inc Promotional Expenses for September Were $1,000

Question 132

Essay

Samiera,Inc.,reports the following information for September sales:
 Sales $60,000 Variable costs 12,000 Fixed costs 16,000 Operating income $32,000\begin{array}{lr}\text { Sales } & \$ 60,000 \\\text { Variable costs } & 12,000 \\\text { Fixed costs } & 16,000 \\\text { Operating income } & \$ 32,000\end{array} Promotional expenses for September were $1,000.
Required:
If sales double in October,what is the impact on the variable costs?

Correct Answer:

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The variable costs also double...

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