Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume Jacob Garzon prepared the income statement below based on a sales volume of 4,000 photographs. Sales revenue Less variable expenses $ 80,000 $ 20.00
Assume Jacob Garzon prepared the income statement below based on a sales volume of 4,000 photographs. Sales revenue Less variable expenses $ 80,000 $ 20.00 Cost of goods sold $ 24,000 6.00 Salaries and wages expense 8,000 2.00 Postage expense 6,000 1.50 Total variable expenses 38,000 9.50 contribution margin 42,000 $ 10.50 Less fixed expenses Cost of goods sold 4,000 Advertising 600 Salaries and wages expense 10,000 Insurance expense 1,500 Depreciation expense 1,300 Total fixed expenses Operating income $ 17,400 24,600 Calculate the change in operating income assuming Jacob sells an additional 60 photographs. ROUND YOUR ANSWER TO WHOLE DOLLARS. DO NOT INCLUDE A $ IN YOUR
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started