
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Transcribed Image Text:TechGadget Inc. sells a high-end tablet with a unit
price of $120. The unit variable cost is $50, and fixed
costs amount to $240,000.
Current sales volume is 15,000 units.
By how much will operating income change if sales
increase by 6,000 units?
A) $420,000 increase
B) $350,000 increase
C) $250,000 increase
D) $500,000 increase
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