KrisKros Company has a contribution margin per unit of $54. If 9000 more items are sold, and fixed expenses remain the same, the net change in operating income will be
A)$486,000
B)-$486,000
C)$9054
D)$9000

Question

Quizplus · Accepted Answer

Net change in operating income = (change in units sold) x (contribution margin per unit)
= 9000 x $54
= $486,000
Therefore, the net change in operating income will be an increase of $486,000.

KrisKros Company Has a Contribution Margin Per Unit of $54