1 How much would operating income increase if sales increased by 20 2 What would be the effect on the sweet potato lines net income if the company increased sales commissions on chips by 25 , they expect to increase sales by 8 3 What would be the effect on the sweet potato lines net income if the company increased advertising expense with an additional $150,000 in fixed advertising, which would raise their sales by about 7 35 of Manufacturing Overhead (MOH) is variable, and 90 of S A (selling and administrative) costs are fixed, while the rest of S A are commissions Roberts Chips Co Sweet Potato Chip Division Operating Results for Quarter 3 $ 1,950,000 Revenues Cost of Goods Sold DM DL MOH Gross Margin Selling and Admin Division Operating Income $ 487,500 $ 146,250 $ 130,000 $ $ $ $ 763,750 1,186,250 975,000 211,250 Units sold 325,000

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1  How much would operating income increase if sales increased by 20   2  What would be the effect on the sweet potato lines net income if the company increased sales commissions on chips by 25 , they expect to increase sales by 8   3  What would be the effect on the sweet potato lines net income if the company increased advertising expense with an additional $150,000 in fixed advertising, which would raise their sales by about 7   35  of Manufacturing Overhead (MOH) is variable, and 90  of S A (selling and administrative) costs are fixed, while the rest of S A are commissions Roberts Chips Co  Sweet Potato Chip Division Operating Results for Quarter 3 $ 1,950,000 Revenues Cost of Goods Sold  DM DL MOH Gross Margin Selling and Admin Division Operating Income $ 487,500 $ 146,250 $ 130,000 $ $ $ $ 763,750 1,186,250 975,000 211,250 Units sold 325,000

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1. How much would operating income increase if sales increased by 20%? 2. What would be the effect on the sweet potato lines net income

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