Eigen Manufacturing Corp If Sales Reduce to Half of the Amount in the

question 199

Multiple Choice

Eigen Manufacturing Corp.provided the following information for last month: $$\begin{array} { l r } \text { Sales } & \$ 40,000 \\\text { Variable costs } & 14,000 \\\text { Fixed costs } & 10,000 \\\text { Operating income } & \$ 16,000\end{array}$$ If sales reduce to half of the amount in the next month,what is the projected operating income?

• A) $15,000
• B) $6,000
• C) $16,000
• D) $3,000

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