FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question

Philip Inc. has provided the following data:

Data Table
Accounts 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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