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The Racquet Store Has Provided the Following Information for a Recent

Question 88

Multiple Choice

The Racquet Store has provided the following information for a recent month regarding the three styles of racquets that it sells:
 Pro  Intermediate  Beginner  Sales $300,000$180,000$120,000 Variable expenses $180,000$144,000$36,000\begin{array} { | l | l | l | l | } \hline & \text { Pro } & \text { Intermediate } & \text { Beginner } \\\hline \text { Sales } & \$ 300,000 & \$ 180,000 & \$ 120,000 \\\hline \text { Variable expenses } & \$ 180,000 & \$ 144,000 & \$ 36,000 \\\hline\end{array} Fixed expenses: $360,000
If sales were to increase $200,000 next month, how much would operating income increase
Assuming that the sales mix remains the same?


A) $120,000
B) $80,000
C) $200,000
D) $100,000

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