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The Following Information Is Available for Company ZZ If Sales Increase to $1,500,000,what Is Operating Income?
A) $405,000

Question 131

Multiple Choice

The following information is available for Company ZZ:
 Sales $1,000,000 Variable Selling Expenses 22,000 Fixed Selling Expenses 33,000 Variable Administrative Expenses 30,000 Fixed Administrative Expenses 10,000 Variable Cost of Goods Sold 400,000 Fixed Cost of Goods Sold 100,000\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Variable Selling Expenses } & 22,000 \\\text { Fixed Selling Expenses } & 33,000 \\\text { Variable Administrative Expenses } & 30,000 \\\text { Fixed Administrative Expenses } & 10,000 \\\text { Variable Cost of Goods Sold } & 400,000 \\\text { Fixed Cost of Goods Sold } & 100,000\end{array}
If sales increase to $1,500,000,what is operating income?


A) $405,000
B) $500,000
C) $548,000
D) $679,000

Correct Answer:

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