Assume the Following Amounts If Sales Revenue Per Unit Decreases to $22 and 10,000

question 59

Multiple Choice

Assume the following amounts: $$\begin{array} { | l | r | } \hline \text { Tatal fixed costs } & \$ 20,000 \\\hline \text { Sale price per unit } & \$ 24 \\\hline \text { Variable costs per urit } & \$ 15 \\\hline\end{array}$$ If sales revenue per unit decreases to $22 and 10,000 units are sold,what is the operating income?

• A)$ 50,000
• B)$ 90,000
• C)$220,000
• D)$ 70,000