Operating income will increase

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Question: Total Amount per unit Units 10,000 Sales $150,000 $15 Variable Costs: Direct Materials $50,000 $5 Direct Labor $30,000 $3 Variable Manufacturing Overhead $10,000 $1 Shipping $10,000 $1 Total Variable Costs: $100,000 $10 Contribution Margin: $50,000 $5 Fixed Costs: Fixed Manufacturing Overhead $20,000 Advertising $10,000 Total Fixed Costs $30,000 Net Operating Income (Loss) $20,000 Given a sales volume increase of 10%, operating income will increase

Reference no: EM133608983

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