Question: Based on the information below, if Wanda had a $10,000 increase in sales, profits would increase by: Sales $85,000 Less variable costs: Manufacturing $30,000 Selling
Based on the information below, if Wanda had a $10,000 increase in sales, profits would increase by:
| Sales | $85,000 | |
| Less variable costs: | ||
| Manufacturing | $30,000 | |
| Selling and administrative | 10,000 | (40,000) |
| Contribution margin | 45,000 | |
| Less fixed costs: | ||
| Manufacturing | 12,000 | |
| Selling and administrative | 9,000 | (21,000) |
| Profit | $24,000 |
Select one:
A. $5,290
B. $10,000
C. $5,789
D. $4,118
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help