Question

Below is the contribution margin income statement for a company's first year of operation. Next year,...

  1. Below is the contribution margin income statement for a company's first year of operation. Next year, they anticipate sales volume to increase by 5%. What will be the net change in operating income?

    Revenue $600,000
    Variable Cost 410,000
    Contribution Margin 190,000
    Fixed Cost 175,000
    Operating Income 15,000

    5% increase

    300% increase

    No change

    63% increase

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