Wiles Inc'S Unit Selling Price Is $40,the Unit Variable Costs Are

question 23

Multiple Choice

Wiles Inc.'s unit selling price is $40,the unit variable costs are $30,fixed costs are $135,000,and current sales are 10,000 units.How much will operating income change if sales increase by 5,000 units?

• A)$50,000 increase
• B)$65,000 decrease
• C)$100,000 increase
• D)$50,000 decrease

---

Definitions:

Break-even Chart

A graphical representation that shows when a business will be able to cover all its expenses and start generating a profit, based on varying levels of output or sales.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, over a specified period.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume, such as raw materials and labor.

Total Revenue

The total income generated from the sale of goods or services by a company before any expenses are subtracted.