The Rial Company's Income Statement for June Is Given Below

question 33

Multiple Choice

The Rial Company's income statement for June is given below:
-If sales for Division F increase $40,000 with a $10,000 increase in the Division's traceable fixed costs,the overall company net operating income should:

• A)increase by $30,000
• B)increase by $6,000
• C)increase by $2,889
• D)decrease by $4,000

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Definitions:

Routine Requests

Standard inquiries or appeals that are made regularly within the context of business or professional communication.

Potential Sale

An opportunity that might result in the purchase of goods or services.

Goodwill Message

A communication intended to foster positive relations, often expressing thanks, congratulations, or well-wishes.

Positive Response

A favorable or affirmative reaction to a message, proposal, or situation.