Acme Company Has Variable Costs Equal to 30% of Sales

question 14

Multiple Choice

Acme Company has variable costs equal to 30% of sales.The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $7,000.By what amount will net income increase?

• A) $0
• B) $3,000
• C) $7,000
• D) $4,000