You Have Been Provided with the Following Information If Sales Increase by 10%,what Level of Fixed Costs Will

question 84

Multiple Choice

You have been provided with the following information:
$$\begin{array} { | l | r | } \hline & \text { Total } \\\hline \text { Sales } & \$ 90,000 \\\hline \text { Less Variable expenses } &\underline{ 54,000 }\\\hline \text { Contribution margin } & 36,000 \\\hline \text { Less fixed expenses } & \underline { 24,000 } \\\hline \text { Operating profit } & \$ 12,000 \\\hline\end{array}$$ If sales increase by 10%,what level of fixed costs will yield a 20% increase in profits?

• A) $14,400.
• B) $19,200.
• C) $25,200.
• D) $26,400.