(c)If Pharoah's sales were to increase by $100,000 with no change in fixed expenses, by how much would operating incomeincrease? (Use the rounded contribution margin ratio calculated in the previous part to compute breakeven sales.)Net Operating income will increase bye Textbook and MediaSave for Later$Attempts: 0 of 3 usedSubmit Answer Pharoah sells a learning system that helps preschool and elementary students learn basic math facts and concepts. The company'sincome statement from last month is as follows:Sales revenueVariable expensesContribution marginFixed expensesOperating incomeTotal$756,000264,600491,400282,750$ 208,650Per Unit$5418.90$35.10

The contribution Margin is calculated as difference between sales and variable cost. With increase…

Pharoah sells a learning system that helps preschool and elementary students learn basic math facts and concepts. income statement from last month is as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Total $756,000 264,600 491,400 282,750 $208,650 Per Unit $54 18.90 $35.10

Pharoah sells a learning system that helps preschool and elementary students learn basic math facts and concepts. income statement from last month is as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Total $756,000 264,600 491,400 282,750 $208,650 Per Unit $54 18.90 $35.10

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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