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The Store has provided the following information regarding the three styles of bikes that it sells: Advanced Intermediate Basic Sales $300,000 $180,000 $120,000 Variable expenses
The Store has provided the following information regarding the three styles of bikes that it sells:
| Advanced | Intermediate | Basic |
Sales | $300,000 | $180,000 | $120,000 |
Variable expenses | $180,000 | $144,000 | $ 36,000 |
Fixed expenses: $360,000
If sales were to increase $200,000 overall next month, how much would operating income increase assuming that the sales mix as well as the operating income margin/ratio to sales remains the same?
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