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

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

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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Accounts	Amounts
Sales per unit	$120
Variable cost per unit	$40
Fixed costs	$280,000
Units sold	10,000

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