Warrix Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. If sales increase to 3,020 units,the increase in net operating income would be closest to:
A) $800.00
B) $20.00
C) $600.00
D) $200.00

Question

Warrix Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.  If sales increase to 3,020 units,the increase in net operating income would be closest to:
A) $800.00 
B) $20.00 
C) $600.00 
D) $200.00

Quizplus · Accepted Answer

The increase in net operating income would be the increased contribution margin because fixed expenses are not affected.
 11ea7761_1859_c2bd_81a5_b1582a2f6dc0_TB2580_00 11ea7761_1859_e9ce_81a5_3d2470db2f7e_TB2580_00

Warrix Corporation Has Provided the Following Contribution Format Income Statement