Exhibit 21-5 The following is a partial income statement for Duncan Corporation for 2011:

- Refer to Exhibit 21-5. What will be Duncan Corporation's operating income if sales volume increases by 40 percent?

Question

Exhibit 21-5 The following is a partial income statement for Duncan Corporation for 2011:

- Refer to Exhibit 21-5. What will be Duncan Corporation's operating income if sales volume increases by 40 percent?

Quizplus · Accepted Answer

Duncan Corporation's operating income will be $6,080 if sales volume increases by 40 percent. This is because the contribution margin is 40%, so a 40% increase in sales volume will result in a 40% increase in operating income.

Exhibit 21-5 the Following Is a Partial Income Statement for Duncan