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masha68 [24]
3 years ago
13

O'Neill, Incorporated income statement for the most recent month is given below. A proposal has been made that will lower variab

le expenses in Store A to 62% of sales. However, this reduction can only be accomplished by an increase in fixed expenses of $8,000. If this proposal is implemented and sales remain constant, overall company net operating income should: Select one: a. remain the same b. decrease by $4,200 c. increase by $2,000 d. increase by $8,000

Business
1 answer:
topjm [15]3 years ago
4 0

Answer:

c. increase by $2,000

Explanation:

The computation of company net operating income is shown below:-

New amount for Store A variable expenses = Sales percentage × Store A sales

= 0.62 × $100,000

= $62,000

Change in net operating income = (Variable expenses of store A - New amount for Store A variable expenses) - Fixed expenses

= ($72,000 - $62,000) - $8,000

= $10,000 - $8,000

= $2,000 increase

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Answer:

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3 years ago
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Answer:

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In order to help the student expand his/her knowledge I will help answer the question. This in hope that the student will get a piece of knowledge that will help him/her through his/her homework or future tests.

The most socially responsible companies establish codes of conduct for their vendors, setting clear policies for human rights wages, safety, and environmental impact. In fact many of this companies have this establish today.
<span>
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