Answered: Mediocre Company has sales of $120,000,…

Mediocre Company has sales of $120,000, fixed expenses of $24,000, and a net income of $12,000. If sales rose 10%, the new net income would be: A) $16,800 B) $36,000 C) $15,600 D) $13,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Mediocre Company has sales of $120,000, fixed
expenses of $24,000, and a net income of $12,000. If
sales rose 10%, the new net income would be:
A) $16,800
B) $36,000
C) $15,600
D) $13,200

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