Wiles Inc'S Unit Selling Price Is $40, the Unit Variable Costs

question 2

Multiple Choice

Wiles Inc.'s unit selling price is $40, the unit variable costs is $30, fixed costs are $135,000, and current sales are 10,000 units.How much would operating income change if sales increase by 5,000 units?

• A) $50,000 increase
• B) $65,000 decrease
• C) $100,000 increase
• D) $50,000 decrease

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Definitions:

Workers' Compensation

An insurance program that provides benefits to employees who suffer job-related injuries or illnesses.

Premium Payment

The periodic amount paid by an insurance policyholder to an insurance company in exchange for the coverage provided by the policy.

Prepaid Workers' Compensation

An asset account that represents payments made in advance for workers' compensation insurance coverages.

Workers' Compensation Insurance Expense

The cost incurred by employers to provide insurance that covers employees' injuries or illnesses related to work.