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Variable costs as a percentage of sales for Lemon Inc. are 76%, current sales are $621,000, and fixed costs are $175,000. How much will operating income change if sales increase by $45,400? Oa. $34,504 decrease Ob. $10,896 increase Oc. $34,504 increase Od $10,896 decrease

Variable costs as a percentage of sales for Lemon Inc. are 76%, current sales are $621,000, and fixed costs are $175,000. How much will operating income change if sales increase by $45,400? Oa. $34,504 decrease Ob. $10,896 increase Oc. $34,504 increase Od $10,896 decrease

FINANCIAL ACCOUNTING
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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Variable costs as a percentage of sales for Lemon Inc. are 76%, current sales are $621,000, and fixed costs are $175,000. How much will operating income change if sales increase by $45,400? Oa. $34,504 decrease Ob. $10,896 increase Oc. $34,504 increase Od $10,896 decrease
Transcribed Image Text:Variable costs as a percentage of sales for Lemon Inc. are 76%, current sales are $621,000, and fixed costs are $175,000. How much will operating income change if sales increase by $45,400? Oa. $34,504 decrease Ob. $10,896 increase Oc. $34,504 increase Od $10,896 decrease
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