Given the following information, what happens to operating income and net income if output is increased by 10 percent? Verify your answer.
Total assets $100,000
Debt (12% interest rate) $80,000
Equity $20,000
Variable costs of production $14 per unit

Fixed cost of production $27,000
Units sold 12,300
Sale price per unit $19.75

Question

​Given the following information, what happens to operating income and net income if output is increased by 10 percent? Verify your answer.​
Total assets $100,000
Debt (12% interest rate) $80,000
Equity $20,000
Variable costs of production $14 per unit
​
Fixed cost of production $27,000
Units sold 12,300
Sale price per unit $19.75
​

Quizplus · Accepted Answer

The Answer of ​Given the following information, what happens to operating income and net income if output is increased by 10 percent? Verify your answer.​
Total assets $100,000
Debt (12% interest rate) $80,000
Equity $20,000
Variable costs of production $14 per unit
​
Fixed cost of production $27,000
Units sold 12,300
Sale price per unit $19.75
​

​Given the Following Information, What Happens to Operating Income and Net

Given the Following Information, What Happens to Operating Income and Net