contestada

Sales $100,000
Variable Costs $60,000
Contribution Margin $40,000
Fixed Costs $30,000
Operating Income $10,000
The above financial information was the result of selling 9,101 units. What would their new operating income be if they sold 10,588 units?

Respuesta :

Zviko

Answer:

Operating income At 10,588 units

Sales($100,000/9101)×10588                                  116,339

Less Variable Costs ($60,000/9101)×10588           69,803

Contribution                                                              46,536

Less Fixed Cost                                                        30,000

Operating Income                                                     16,536

Explanation:

At 10588 units

Sales are variable with level of activity

Variable Cost will vary with the level of activity

Fixed Costs will remain the same

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