Business, 22.04.2020 04:26 strodersage

The following information applies to questions 9 and 10. Company AB Sales $100,000 $100,000 Variable cost 60,000 40,000 Contribution margin 40,000 60,000 Fixed expenses 20,000 40,000 Operating income 20,000 20,000 9. If Company A experiences a 40% increase in sales, operating income would increase to: A) $32,000 B) $24,000 C) $28,000 D) $36,000

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Answer from: QuarkyFermion

D) $36,000

Explanation:

Company Current After Increase Change

Sales $100,000 $140,000 +40,000

Variable cost $60,000 $84,000 +24,000

Contribution margin $40,000 $56,000 +16,000

Fixed expenses $20,000 $20,000 +0

Operating income $20,000 $36,000 +16,000

The Increase in Operating Income will be = $36,000 as our final answer

Answer from: vasquez8518

D) $36,000

Explanation:

The income received from the operations of the business is known as the operating income. It is calculated after deducting all the variable and fixed overheads from the sales value.

Following is the comparative contribution income statement before and after the change in the sales value.

Company Current After Increase Change

Sales $100,000 $140,000 +40,000

Variable cost $60,000 $84,000 +24,000

Contribution margin $40,000 $56,000 +16,000

Fixed expenses $20,000 $20,000 +0

Operating income $20,000 $36,000 +16,000

Increase in Operating Income = $36,000

Answer from: Quest

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

Answer from: Quest

The answer is yes it's correct they have to guarantee that job back when they come back

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The following information applies to questions 9 and 10. Company AB Sales $100,000 $100,000 Variable...

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