Solved

Information Concerning Simmons Corporation's Product a Follows  Sales $400,000 Variable costs 300,000 Fixed costs 50,000\begin{array}{ll}\text { Sales } & \$ 400,000 \\\text { Variable costs } & 300,000 \\\text { Fixed costs } & 50,000\end{array}

Question 107

Multiple Choice

Information concerning Simmons Corporation's Product A follows:  Sales $400,000 Variable costs 300,000 Fixed costs 50,000\begin{array}{ll}\text { Sales } & \$ 400,000 \\\text { Variable costs } & 300,000 \\\text { Fixed costs } & 50,000\end{array} Assuming that Simmons increased sales of Product A by 25 percent,what should the profit from Product A be?


A) $ 50,000
B) $ 62,500
C) $ 75,000
D) $170,000

Correct Answer:

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