Zipee Inc's unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units?
A) $125,000 decrease
B) $175,000 increase
C) $75,000 increase
D) $247,500 increase
D
You might also like to view...
What are the two common attribution errors?
A. fundamental attribution error and self-serving bias B. rudimentary element error and self-serving bias C. rudimentary element error and self-absorbed slant D. self-absorbed slant and fundamental attribution error
Traffic in major metropolitan areas is too often brought to a standstill because accident investigators must painstakingly measure skid marks and other evidence to determine culpability
After a police chief missed an important meeting because of a wreck investigation, he was pleased to find an article about a company that markets a new high-tech crash investigation system that shortens the time required for these investigations by 40 percent. In which stage of the adoption process is the police chief? A) evaluation B) trial C) interest D) confirmation E) adoption
Jennings Creations is considering an investment in a computer that is capable of producing various images that are useful in the production of commercial art. The computer would cost $20,000 and have an expected life of eight years. The computer is expected to generate additional annual net cash receipts (before-tax) of $6,000 per year. The computer will be depreciated according to the
straight-line method and the firm's marginal tax rate is 25 percent. Refer to Jennings Creations. What is the after-tax payback period for the computer project? a. 7.62 years b. 3.90 years c. 4.44 years d. 3.11 years
________ refers to a salesperson's ability to contact people throughout an account to discuss a product.
A. Account penetration B. Missionary work C. Order taking D. Order getting E. Sales power