A Company Has Sales of $87,500 at the Break-Even Point

question 23

Multiple Choice

A company has sales of $87,500 at the break-even point and fixed costs are $35,000.Assuming cost behaviour does not change if sales increase by $20,000 how much will operating income will increase by?

• A) $20,000.00.
• B) $12,000.00.
• C) $8,000.00.
• D) $4,000.00.