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Waterproof Roofing Company has provided the following information: Sales revenue $778,000 Variable costs 505,000 Fixed costs 212,000 Which of the following statements is true, if
Waterproof Roofing Company has provided the following information:
Sales revenue | $778,000 |
Variable costs | 505,000 |
Fixed costs | 212,000 |
Which of the following statements is true, if the sales volume increases by
10%?
A.Contribution margin will increase by
$77,800.
B.Fixed expenses will increase by
$21,200.
C.Operating income will increase by
$50,500.
D.Operating income will increase by
$27,300.
Please show work.
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