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Molina Company has provided the following information: Sales $779,000 Variable expenses 506,000 Fixed expenses 213,000 Which of the following statements is true, if the sales
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Molina Company has provided the following information:
Sales | $779,000 |
Variable expenses | 506,000 |
Fixed expenses | 213,000 |
Which of the following statements is true, if the sales volume increases by 10%?
A.Fixed expenses will increase by $21,300.
B.Contribution margin will increase by $77,900.
C.Operating income will increase by $6,000.
D. Operating income will increase by $27,300.
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