FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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If Nancy can increase sales by 10%, by what dollar amount will her operating income increase?

Nancy Daniel sells gourmet chocolate chip cookies. The results of her last month of operations are as follows:
Sales revenue
$49,500
Cost of goods sold (all variable)
24,500
Gross margin
25,000
Selling expenses (70% variable)
8,000
Administrative expenses (20% variable)
12,000
Operating income
$5,000
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Transcribed Image Text:Nancy Daniel sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $49,500 Cost of goods sold (all variable) 24,500 Gross margin 25,000 Selling expenses (70% variable) 8,000 Administrative expenses (20% variable) 12,000 Operating income $5,000
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