Spice Inc.'s unit selling price is $47, unit variable costs are $32, fixed costs are $106,000, and current sales are 10,200 units. How much will income from operations change if sales increase by 5,300 units? Oa. $232,500 increase Ob. $153,000 decrease Oc. $153,000 increase Od. $79,500 increase

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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Spice Inc.'s unit selling price is $47, unit variable costs are $32, fixed costs are $106,000, and current sales are 10,200 units. How much will income from operations change if sales increase by
5,300 units?
Oa. $232,500 increase
Ob. $153,000 decrease
Oc. $153,000 increase
Od. $79,500 increase
Transcribed Image Text:Spice Inc.'s unit selling price is $47, unit variable costs are $32, fixed costs are $106,000, and current sales are 10,200 units. How much will income from operations change if sales increase by 5,300 units? Oa. $232,500 increase Ob. $153,000 decrease Oc. $153,000 increase Od. $79,500 increase
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