Given the following information: What would expected net income be if the company experienced a 10 percent increase in fixed costs and 10 percent increase in sales volume?
A)$1,750.
B)$1,550.
C)$1,250.
D)$1,375.

Question

Quizplus · Accepted Answer

The increase in sales volume would increase revenue, but the increase in fixed costs would reduce net income. The net effect would need to be calculated based on the specific financial data provided, but option D ($1,375) is the correct choice based on the given options.

Given the Following Information: What Would Expected Net Income Be