The Following Is Addison Corporation's Contribution Format Income Statement for Last

question 50

Multiple Choice

The following is Addison Corporation's contribution format income statement for last month:

$\begin{array} { | l | r | } \hline \text { Sales } & \$ 1,000,000 \\\hline \text { Less: variable expenses } & \underline { 700,000 } \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less: fixed expenses } & \underline { 180,000 } \\\hline \text { Operating income } & \$ 120,000 \\\hline\end{array}$ The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

-If sales increase by 100 units,by how much should operating income increase?

• A) $400.
• B) $4,800.
• C) $1,500.
• D) $2,500.

---

Definitions:

Organizational Commitment

The psychological attachment and loyalty an employee feels towards their organization, which can influence their willingness to remain with the company.

Loyalty

A strong feeling of support or allegiance, often displayed by customers to brands or by employees to their employers.

Organization

An entity comprising multiple people, such as an institution or an association, that has a particular purpose.

Organizational Citizenship Behaviors

Organizational citizenship behaviors are the extras people do to go the additional distance in their work.