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Assume Mussa Company Has the Following Information Available If Fixed Costs Increase by $200,000,what Is the Expected Operating

Question 72

Multiple Choice

Assume Mussa Company has the following information available:
Selling price per unit $100Variable cost per unit $45 Fixed costs per year$420,000Expected sales per year (units)  20,000\begin{array} { l } \text {Selling price per unit }&\$100\\ \text {Variable cost per unit }&\$45\\ \text { Fixed costs per year}&\$420,000\\ \text {Expected sales per year (units) }&20,000\\\end{array}

If fixed costs increase by $200,000,what is the expected operating income?


A) $280,000
B) $480,000
C) $680,000
D) $1,380,000

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