Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000, and current sales are 9,600 units. How much will operating income change if sales increase by 5,600 units? O a. $144,000 decrease Ob. $228,000 increase Oc. $144,000 increase Od. $84,000 increase

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed
costs are $106,000, and current sales are 9,600 units. How much will
operating income change if sales increase by 5,600 units?
a. $144,000 decrease
Ob. $228,000 increase
Oc. $144,000 increase
Od. $84,000 increase
Transcribed Image Text:Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000, and current sales are 9,600 units. How much will operating income change if sales increase by 5,600 units? a. $144,000 decrease Ob. $228,000 increase Oc. $144,000 increase Od. $84,000 increase
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