Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?

Are you having trouble answering the question “Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?

A. $16,000 increase
B. $5,000 increase
C. $24,000 increase
D. $11,000 decrease

Answer: A

We hope you have got the correct answer to your question “Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?”, which was part of Accounting MCQs & Answers. Thanks for choosing us.