A company has provided the following data:
If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,what will the outcome be for operating income?
A) Increase by $61,000.
B) Increase by $20,000.
C) Increase by $3,500.
D) Increase by $11,000.

Question

A company has provided the following data: 
If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,what will the outcome be for operating income?
A) Increase by $61,000. 
B) Increase by $20,000. 
C) Increase by $3,500. 
D) Increase by $11,000.

Quizplus · Accepted Answer

The Answer of A company has provided the following data: 
If the dollar contribution margin per unit is increased by 10%,total fixed cost is decreased by 20%,and all other factors remain the same,what will the outcome be for operating income?
A) Increase by $61,000. 
B) Increase by $20,000. 
C) Increase by $3,500. 
D) Increase by $11,000.

A Company Has Provided the Following Data