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8) A company has sales of $87,500 at the break-even point and fixed costs are $35,000. Assuming cost behaviour does not change if sales increase
8) A company has sales of $87,500 at the break-even point and fixed costs are $35,000. Assuming cost behaviour does not change if sales increase by $20,000 how much will operating income will increase by? A) $12,000.00 B) $8,000.00 C) $4,000.00. D) $20,000.00 9) Green Company's variable expenses are 75% of sales. At a sales level of $400,000, the company's degree of operating leverage is 8. At this sales level, fixed expenses equal which of the following? A) $87,500. B) $75,000. C) $100,000. D) $50,000. 10) If sales increase from $80,000 per year to $120,000 per year, and if the degree of operating leverage is 5, then by what percentage should operating income increase? A) 167%. B) 250%.C) 100%. D) 334%
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