Spice Inc'S Unit Selling Price Is $60, the Unit Variable Costs

question 92

Multiple Choice

Spice Inc.'s unit selling price is $60, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 8,000 units?

• A) $150,000 decrease
• B) $175,000 increase
• C) $200,000 increase
• D) $150,000 increase

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