following information for September sales: Sales $ 30,000 Less: Variable Costs $ 6,000 Fixed costs $ 8,000 Operating income $ 16,000 Required: If sales double in October, what is the projected operating income? Select one: a

Accounting Nov 12, 2020

following information for September sales: Sales $ 30,000 Less: Variable Costs $ 6,000 Fixed costs $ 8,000 Operating income $ 16,000 Required: If sales double in October, what is the projected operating income? Select one: a. $40,000 b. $ 46,000 c. $ 32.000 d. $ 88,000 re to search

Expert Solution

Calculating Projcted Operating Income if Sales double in October :


Sales ($30000*2)	$ 60,000
Less :
Variable Cost ($6000*2)	$ 12,000
Fixed Costs	$ 8,000
Operating Income	$ 40,000

Note : Fixed Costs will not change along with change in sales.

Therefore, October's Projected Operating Income will be a.$40,000.

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