Question
Shown here is an income statement in the traditional format for a firm with a sales volume of 18,500 units: Revenues$166,500 Cost of goods sold
Shown here is an income statement in the traditional format for a firm with a sales volume of 18,500 units:
Revenues$166,500
Cost of goods sold ($10,500 + $2.80/unit)62,300
Gross profit$104,200
Operating expenses:
Selling ($2,450 + $0.85/unit)18,175
Administration ($5,050 + $0.45/unit)13,375
Operating income$72,650
Calculate the firm's operating income (or loss) if the volume changed from 18,500 units to 23,500 units.
Calculate the firm's operating income (or loss) if the volume changed from 18,500 units to 10,500 units.
Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit do not change and total revenues increase by $13,500
Calculate the firm's operating income (or loss) if unit selling price and variable expense per unit do not change and total revenues decrease by $10,000
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