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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