Posted: May 27th, 2017

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total ,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?
$16,000 increase
$5,000 increase
$24,000 increase
$11,000 decreas