Cindy, Inc. sells a product for $10 per unit. The variable expenses are $5 per unit, and the fixed expenses total $40,200 per period. By how much will net operating income change if sales are expected to increase by $46,000?
a. $5,800 increase
b. $17,200 decrease
c. $23,000 increase
d. $31,700 increase
The question belongs to Accounting and it discusses about calculation of net operating income change with increase in sales.
Total Word Count 21Download Full Solution