Answer the Following Questions Using the Information Below

question 110

Multiple Choice

Answer the following questions using the information below:
Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs.
-For every $25,000 of ticket packages sold, operating income will increase by:

• A)$6,250
• B)$12,500
• C)$18,750
• D)an indeterminable amount