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. 11ea7998_5e00_ecb7_911b_39a921a74160_TB2627_00_TB2627_00 11ea7998_5e01_13c8_911b_552d21244d30_TB2627_00_TB2627_00

Warrix Corporation Has Provided the Following Contribution Format Income Statement