Question: The Table Clock Company sells a particular clock for $60. The variable costs are $21 per clock and the breakeven point is 210 clocks.
The Table Clock Company sells a particular clock for $60. The variable costs are $21 per clock and the breakeven point is 210 clocks. The company expects to sell 260 clocks this year. If the company actually sells 390 clocks, what effect would the sale of additional 130 clocks have on operating income? Explain your answer. The sale of an additional 130 clocks would operating income by the amount of The total effect would amount to the additional contribution margin. the income that exceeds fixed costs. the increase in units sold. the revenue that exceeds the breakeven point.
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