if the sales volume decreases by 25 and the variable expense per unit increases by 1 636506
Holger Incorporated, which produces and sells a single product, has provided the following
data:
Sales |
2,000 units |
Selling price |
$60 per unit |
Variable expense |
$40 per unit |
Fixed expense |
$20,000 |
Consider each of the following questions independently.
If the sales volume decreases by 25% and the variable expense per unit increases by 15%, net operating income is expected to:
A) decrease by $19,000
B) decrease by $1,000
C) increase by $1,750
D) decrease by $15,000