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Zippy Inc. unit selling price is $90, the unit variable cost for $40.50, fixed cost $170,000, and a current sales are 12,000 units. How much will operating income change if sales increased by 5000 units

Respuesta :

Answer:

247500

Step-by-step explanation:

First, find out how much they would earn if Zippy Inc sells a unit for $90 with a cost of $40.50 making them and a $170000 fixed cost and if they are selling 12000 units

(you get $90*12000-$40.50*12000-170000)

Then, find out how much they would earn if Zippy Inc sells a unit for $90 with a cost of $40.50 making them and a $170000 fixed cost and if they are selling 17000 units

(you get $90*17000-$40.50*17000-170000)

Find the difference between the 2 answers which gives you

671500-424000=247500

671500 is the income for 17000 units

424000 is the income for 15000 units

Answer :$247,500 increase

Explanation :$247,500 increase $125,000 decrease $75,000 increase $175,000 increase

I hope I can help you :)