Eigen Manufacturing Corp.provided the following information for last month: $$\begin{array} { l r }
\text { Sales } & \$ 40,000 \
\text { Variable costs } & 14,000 \
\text { Fixed costs } & 10,000 \
\text { Operating income } & \$ 16,000
\end{array}$$ If sales reduce to half of the amount in the next month,what is the projected operating income?
A) $15,000
B) $6,000
C) $16,000
D) $3,000

Question

Eigen Manufacturing Corp.provided the following information for last month: $$\begin{array} { l r } 
\text { Sales } & \$ 40,000 \
\text { Variable costs } & 14,000 \
\text { Fixed costs } & 10,000 \
\text { Operating income } & \$ 16,000
\end{array}$$ If sales reduce to half of the amount in the next month,what is the projected operating income?
A) $15,000
B) $6,000
C) $16,000
D) $3,000

Quizplus · Accepted Answer

The Answer of Eigen Manufacturing Corp.provided the following information for last month: $$\begin{array} { l r } 
\text { Sales } & \$ 40,000 \
\text { Variable costs } & 14,000 \
\text { Fixed costs } & 10,000 \
\text { Operating income } & \$ 16,000
\end{array}$$ If sales reduce to half of the amount in the next month,what is the projected operating income?
A) $15,000
B) $6,000
C) $16,000
D) $3,000

Eigen Manufacturing Corp If Sales Reduce to Half of the Amount in the