Variable Costs as a Percentage of Sales for Leamon Inc

question 50

Multiple Choice

Variable costs as a percentage of sales for Leamon Inc.are 75%,current sales are $600,000,and fixed costs are $110,000.How much will operating income change if sales increase
By $50,000?

• A)$37,500 increase
• B)$12,500 decrease
• C)$37,500 decrease
• D)$12,500 increase

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Definitions:

Insanity Defense

A legal defense used by defendants who argue that they should not be held criminally responsible for their actions due to mental illness impairing their understanding of right and wrong.

Legal Insanity

A legal defense theory suggesting that a person cannot be held responsible for their actions if they are deemed unable to understand the difference between right and wrong due to a mental disorder.

Free Will

The capacity of individuals to act independently, making free choices that are unconstrained by external circumstances or by an agency such as fate or divine will.

Dangerous Criminals

Individuals who have committed serious crimes and are considered a significant threat to public safety and security.