Samiera,Inc.,reports the following information for September sales:
$\begin{array}{lr}
\text { Sales } & \$ 60,000 \
\text { Variable costs } & 12,000 \
\text { Fixed costs } & 16,000 \
\text { Operating income } & \$ 32,000
\end{array}$ Promotional expenses for September were $1,000.
Required:
If sales double in October,what is the impact on the variable costs?

Question

Samiera,Inc.,reports the following information for September sales:
 $\begin{array}{lr}
\text { Sales } & \$ 60,000 \
\text { Variable costs } & 12,000 \
\text { Fixed costs } & 16,000 \
\text { Operating income } & \$ 32,000
\end{array}$ Promotional expenses for September were $1,000.
Required:
If sales double in October,what is the impact on the variable costs?

Quizplus · Accepted Answer

The Answer of Samiera,Inc.,reports the following information for September sales:
 $\begin{array}{lr}
\text { Sales } & \$ 60,000 \
\text { Variable costs } & 12,000 \
\text { Fixed costs } & 16,000 \
\text { Operating income } & \$ 32,000
\end{array}$ Promotional expenses for September were $1,000.
Required:
If sales double in October,what is the impact on the variable costs?

Samiera,Inc Promotional Expenses for September Were $1,000