Question
Combs, Inc., reports the following information for May sales: Sales $300,000 Variable costs 100,000 Fixed costs 40,000 Operating income $160,000 Required: The questions below are
Combs, Inc., reports the following information for May sales:
Sales | $300,000 |
Variable costs | 100,000 |
Fixed costs | 40,000 |
Operating income | $160,000 |
Required: The questions below are independent of each other, so go back to the original information above when you answer the question. Fill in the table below to answer the questions. Do not use dollar signs, but do use commas.
1. If sales volume triple in May, what is the projected operating income?
2. If sales volume decrease by 20%, what is the projected operating income?
| Original | #1 Sales triple | #2 Decrease of 20% in sales |
Sales | $300,000 |
|
|
Variable costs | 100,000 |
|
|
Fixed costs | 40,000 |
|
|
Operating income | $160,000 |
|
|
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