Arthur Company Had the Following Data for the Year Just

question 86

Multiple Choice

Arthur Company had the following data for the year just ended:
$\begin{array}{|l|r|}\hline \text { Sales } & 4,000 \text { units } \\\hline \text { Sales price } & \$ 60 \text { per unit } \\\hline \text { Variable cost } & \$ 18 \text { per unit } \\\hline \text { Fixed costs } & \$ 42,000 \\\hline\end{array}$


-If the company's sales volume increases by 30% next year,all other factors remaining the same,by how much will its operating income increase?

• A) $92,400.
• B) $50,400.
• C) $37,800.
• D) $72,000.

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Definitions:

Engagement

The level of commitment, enthusiasm, and interest an employee shows towards their job and company.

Specific Situation

Refers to a distinct or particular set of circumstances that are unique to a given time, place, or context, requiring tailored responses or strategies.

Evaluation Interview

An interview conducted to assess the effectiveness, outcomes, or value of a certain activity, project, or individual's performance.

Evaluator and Counsellor

Roles often assumed by supervisors or managers in providing feedback and guidance to their employees for performance improvement and personal development.