Sutton Company Produces Flash Drives for Computers, Which It Sells

question 32

Multiple Choice

Sutton Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During April, 700 drives were sold.Fixed costs for April were $4 per unit for a total of $2,800 for the month.How much does Sutton's operating income increase for each $1,000 increase in revenue per month?

• A)$700
• B)$500
• C)$14,000
• D)Not enough information to determine the answer.

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