Molina Company Has Provided the Following Information Which of the Following Statements Is True,if the Sales Volume

question 123

Multiple Choice

Molina Company has provided the following information: $$\begin{array} { | l | r |} \hline \text { Sales } & \$ 779,000 \\\hline \text { Variable expenses } & 508,000 \\\hline \text { Fixed expenses } & 213,000 \\\hline\end{array}$$ Which of the following statements is true,if the sales volume increases by 10%?

• A) Operating income will increase by $5,800.
• B) Operating income will increase by $27,100.
• C) Fixed expenses will increase by $21,300.
• D) Contribution margin will increase by $77,900.

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