Answer:
Operating income= 40,000
Explanation:
Giving the following information:
Total variable expenses are $40,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $40,000.
Sales= operating income + fixed costs + variable costs
Sales= 40,000 + 30,000 + 40,000= 110,000
Operating income:
Sales= 110,000
Variable costs= 40,000
Gross profit= 70,000
Fixed costs= 30,000
Operating income= 40,000
