A firm operated at 80% of capacity for the past year, during which fixed costs were $196,000, variable costs were 61% of sales, and sales were $912,000. Operating profit was

a.$556,320

b.$159,680

c.$127,744

d.$355,680

Spice Inc.'s unit selling price is $50, the unit variable costs are $32, fixed costs are $101,000, and current sales are 9,900 units. How much will operating income change if sales increase by 5,500 units?

a.$277,200 increase

b.$178,200 decrease

c.$99,000 increase

d.$178,200 increase

If fixed costs are $282,000, the unit selling price is $70, and the unit variable costs are $51, what are the old and new break-even sales (units) if the unit selling price increases by $6?

a.5,529 units and 10,780 units

b.4,029 units and 14,842 units

c.14,842 units and 4,029 units

d.14,842 units and 11,280 units