what would o rsquo brien inc rsquo s operating income or loss be if fixed costs were 639261
O’Brien, Inc.’s, 2010 contribution margin income statement shows the following:
Sales @ $8 per unit |
$ 160,000 |
Less: Variable expense |
(128,000) |
Contribution margin |
$ 32,000 |
Less: Fixed expenses |
(44,000) |
Operating income (loss) |
$ (12,000) |
What would O’Brien, Inc.’s, operating income (or loss) be if fixed costs were increased by 10 percent and sales volume increased by 30 percent?
a. $1,290.
b. $2,650.
c. $(6,800).
d. $(9,680).
e. None of the above.