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, net operating income will:
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, net operating income will:
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, net operating income will:
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: If the Sales