Answer:
(D) Operating income will increase by $27,300.
Explanation:
The sales increase will also generate an increase in the variable cost
The fixed cost, remaing unchanged against the volume of production. they do not increase or decrease at the factory level.
So the operating income will increase by the diffrence between sales and variable cost
sales increase will be:
779,000 x 10% = 77,900
variable cost increase:
506,000 x 10% = 50,600
increase in operating income 77,900 - 50,600 = 27,300
Answer:
have developed through to the performing stage
Answer:
it would increase
Explanation:
you pay to pay for gas and oil