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Based on the information below, if Wanda had a $10,000 increase in sales, profits would increase by: Sales $85,000 Less variable costs: Manufacturing $30,000 Selling
Based on the information below, if Wanda had a $10,000 increase in sales, profits would increase by:
Sales | $85,000 | |
Less variable costs: | ||
Manufacturing | $30,000 | |
Selling and administrative | 10,000 | (40,000) |
Contribution margin | 45,000 | |
Less fixed costs: | ||
Manufacturing | 12,000 | |
Selling and administrative | 9,000 | (21,000) |
Profit | $24,000 |
Select one:
A. $5,290
B. $10,000
C. $5,789
D. $4,118
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