Philip Inc. expects their sales to increase by $900,000 next month. If their CMR is calculated as 48%, operating income of the next month would be expected to: Group of answer choices Increase by $432,000 Decrease by $468,000 Decrease by $432,000 Increase by $468,000

Philip Inc. expects their sales to increase by $900,000 next month. If their CMR is calculated as 48%, operating income of the next month would be expected to: Group of answer choices Increase by $432,000 Decrease by $468,000 Decrease by $432,000 Increase by $468,000

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

Philip Inc. expects their sales to increase by $900,000 next month. If their CMR is calculated as 48%, operating income of the next month would be expected to:

Group of answer choices

Increase by $432,000

Decrease by $468,000

Decrease by $432,000

Increase by $468,000

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