Acme Company has variable costs equal to 30% of sales.The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $7,000.By what amount will net income increase?
A) $0
B) $3,000
C) $7,000
D) $4,000

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The Answer of Acme Company has variable costs equal to 30% of sales.The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $7,000.By what amount will net income increase?
A) $0
B) $3,000
C) $7,000
D) $4,000

Acme Company Has Variable Costs Equal to 30% of Sales