Operating results of Max corporation is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income $2,160,000 $1,080,000 $1,080,000 $180,000 $900,000 Increase in net operating income if expected sales increase by 12% next year is: а. 12% b. 10% с. 6% d. 14.40%

Operating results of Max corporation is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income $2,160,000 $1,080,000 $1,080,000 $180,000 $900,000 Increase in net operating income if expected sales increase by 12% next year is: а. 12% b. 10% с. 6% d. 14.40%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Operating results of Max corporation is given below:
$2,160,000
$1,080,000
$1,080,000
$180,000
$900,000
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
Increase in net operating income if expected sales increase by 12% next year is:
а. 12%
b. 10%
с. 6%
d. 14.40%

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