A company has provided the following data:
If the sales volume decreases by 25%,the variable cost per unit increases by 15%,and all other factors remain the same,what will the outcome be for operating income?
A) Decrease by $31,875.
B) Decrease by $15,000.
C) Increase by $20,625.
D) Decrease by $3,125.

Question

A company has provided the following data: 
If the sales volume decreases by 25%,the variable cost per unit increases by 15%,and all other factors remain the same,what will the outcome be for operating income?
A) Decrease by $31,875. 
B) Decrease by $15,000. 
C) Increase by $20,625. 
D) Decrease by $3,125.

Quizplus · Accepted Answer

The Answer of A company has provided the following data: 
If the sales volume decreases by 25%,the variable cost per unit increases by 15%,and all other factors remain the same,what will the outcome be for operating income?
A) Decrease by $31,875. 
B) Decrease by $15,000. 
C) Increase by $20,625. 
D) Decrease by $3,125.

A Company Has Provided the Following Data