Question
Variable costs as a percentage of sales for Lemon Inc. are 63%, current sales are $548,000, and fixed costs are $206,000. How much will operating
Variable costs as a percentage of sales for Lemon Inc. are 63%, current sales are $548,000, and fixed costs are $206,000. How much will operating income change if sales increase by $41,500?
a.$26,145 decrease
b.$15,355 decrease
c.$15,355 increase
d.$26,145 increase
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Cornerstones of managerial accounting
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
5th edition
978-1305302327, 130530232X, 978-1133943983
