The following is Allison Corporation's contribution format income statement for last month:

Sales: $800,000

Variable Expenses: $300,000

Contribution Margin: $500,000

Fixed Expenses: $400,000

Net Operating Income: $100,000

The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.

If the Company's Operating Income Increased by 10%, what is the percentage increase in the Company's sales?

		12%
		2%
		10%
		50%

Ron Swanson Corporation has a standard costing system. The following data are available for June:

Actual Quantity of Direct Materials Purchased: 35,000 pounds

Standard Price of Direct Materials: $4 per pound

Material Price Variance $7,000 Unfavorable

Material Quantity Variance $4,200 Favorable

The actual price per pound of direct materials purchased in June is:

$4.08

$4.20

$3.80

$3.92

The following is Allison Corporation's contribution format income statement for last month:

Sales: $800,000

Variable Expenses: $300,000

Contribution Margin: $500,000

Fixed Expenses: $400,000

Net Operating Income: $100,000

The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.

If sales increased by 200 units, by how much should net operating income increase?

		$16,000
		$5,000
		$2,000
		$10,000

4 points