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

question 40

Multiple Choice

Moylan Company has provided the following information:
$$\begin{array} { | l | l | } \hline \text { Sales } & \$ 781,000 \\\hline \text { Variable expenses } & 5 07,000 \\\hline \text { Fixed expenses } & 216,000 \\\hline\end{array}$$
Which of the following statements is true,if the sales volume increases by 10%?

• A) Operating profit will increase by $5800.
• B) Contribution margin will increase by $78,100.
• C) Operating profit will increase by $27,400.
• D) Fixed expenses will increase by $21,600.

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