FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Philip Inc. has provided the following data:
Data TableAccounts | Amounts |
---|---|
Sales per unit | $120 |
Variable cost per unit | $40 |
Fixed costs | $280,000 |
Units sold | 10,000 |
How much will operating income change if sales increase by $600,000? (Do not round intermediate calculations)
Group of answer choices
$420,000 increase
$420,000 decrease
$200,000 increase
$400,000 increase
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