Remmel Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

-If sales increase to 6,020 units,the increase in net operating income would be closest to:
A) $1,000.00
B) $800.00
C) $200.00
D) $3.33

Question

Remmel Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
 
-If sales increase to 6,020 units,the increase in net operating income would be closest to:
A) $1,000.00 
B) $800.00 
C) $200.00 
D) $3.33

Quizplus · Accepted Answer

The increase in net operating income would be the increased contribution margin because fixed expenses are not affected.
 11ea7761_186c_d4df_81a5_8bdda759b700_TB2580_00 11ea7761_186c_d4e0_81a5_cd3ae710d27a_TB2580_00

Remmel Corporation Has Provided the Following Contribution Format Income Statement