Asked by
Shaikha Alktheri.
on Oct 11, 2024Verified
If the variable cost per unit increases by $10, spending on advertising increases by $1,500, and unit sales increase by 15,800 units, the net operating income would be closest to:
A) $12,500
B) $114,100
C) $91,200
D) $5,700
Net Operating Income
Earnings resulting from the standard operations of a business, without considering taxes and interest expenses.
Variable Cost
Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.
Advertising Spending
The total amount of money that is allocated towards advertising products or services in various media outlets.
- Examine the influence of variations in variable costs and sales volume on net operating income.
Verified Answer
EA
Learning Objectives
- Examine the influence of variations in variable costs and sales volume on net operating income.
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