Spice Inc.'s unit selling price is $54, the unit variable costs are $40, fixed costs are $117,000, and current sales are 10,900 units. How much will operating income change if salesincrease by 5,800 units?Oa. $81,200 increaseOb. $152,600 increaseOc. $233,800 increaseOd. $152,600 decrease

Answer : Calculation of operating income change if sales volume increase by 5800 units : Operating…

Answered: crease by 5,800 units? a. $81,200…

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crease by 5,800 units? a. $81,200 increase b. $152,600 increase $54, the unit variable costs are $40, fixed cos

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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Question

Spice Inc.'s unit selling price is $54, the unit variable costs are $40, fixed costs are $117,000, and current sales are 10,900 units. How much will operating income change if sales
increase by 5,800 units?
Oa. $81,200 increase
Ob. $152,600 increase
Oc. $233,800 increase
Od. $152,600 decrease

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