Question
Devos Inc. sells bulk stationery supplies to businesses in El Paso. They have 4 product lines. Binders, Pencils, Pens, and Desks. Each of the Units
Devos Inc. sells bulk stationery supplies to businesses in El Paso. They have 4 product lines. Binders, Pencils, Pens, and Desks. Each of the Units represents one bulk order for a given product line. The selling price for each bulk unit is as follows: The selling price for each bulk unit is as follows: Item Price Binder $25 Desk $100 Pencil $8 Pens $12. The cost of goods sold for each bulk order is as follows: Item COGS Binder $12 Desk $40 Pencil $3 Pens $4. Their total variable selling expenses are estimated to be $10,000 for the year and are assigned proportionally to each product line based on its sales mix. Fixed costs for the year are estimated to be $6,800. Monthly selling data for each product line can be found here:
Monthly Sales | Product Line | Units |
Jan-20 | Binders | 27 |
Jan-20 | Pens | 83 |
Jan-20 | Desks | 94 |
Jan-20 | Pencils | 95 |
Feb-20 | Desks | 11 |
Feb-20 | Binders | 15 |
Feb-20 | Pencils | 36 |
Feb-20 | Pens | 81 |
Mar-20 | Desks | 4 |
Mar-20 | Binders | 16 |
Mar-20 | Pencils | 56 |
Mar-20 | Pens | 99 |
Apr-20 | Desks | 11 |
Apr-20 | Binders | 22 |
Apr-20 | Pencils | 66 |
Apr-20 | Pens | 105 |
May-20 | Desks | 10 |
May-20 | Binders | 14 |
May-20 | Pencils | 75 |
May-20 | Pens | 105 |
Jun-20 | Desks | 4 |
Jun-20 | Binders | 15 |
Jun-20 | Pens | 76 |
Jun-20 | Pencils | 90 |
Jul-20 | Desks | 7 |
Jul-20 | Binders | 19 |
Jul-20 | Pencils | 53 |
Jul-20 | Pens | 101 |
Aug-20 | Desks | 13 |
Aug-20 | Binders | 24 |
Aug-20 | Pencils | 32 |
Aug-20 | Pens | 108 |
Sep-20 | Desks | 3 |
Sep-20 | Binders | 10 |
Sep-20 | Pencils | 90 |
Sep-20 | Pens | 93 |
Oct-20 | Desks | 8 |
Oct-20 | Binders | 11 |
Oct-20 | Pencils | 35 |
Oct-20 | Pens | 101 |
Nov-20 | Desks | 7 |
Nov-20 | Binders | 28 |
Nov-20 | Pencils | 67 |
Nov-20 | Pens | 73 |
Dec-20 | Desks | 8 |
Dec-20 | Pencils | 14 |
Dec-20 | Binders | 25 |
Dec-20 | Pens | 101 |
if the total sales dollars of all 4 product lines combined increases by 25%, what will be the percentage change in operating income?
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