Rapid Cabinet Makers Inc.provided the following information for last month:

If sales reduce to half the amount in the next month,what is the projected operating income?
A)$1,000
B)$6,000
C)$4,500
D)$18,500

Name: Rapid Cabinet Makers Inc.provided the following information for last month: If sales reduce to half the amount in the next month,what is the projected operating income? A)$1,000 B)$6,000 C)$4,500 D)$18,500
Brand: Quizplus
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Question

Rapid Cabinet Makers Inc.provided the following information for last month:

If sales reduce to half the amount in the next month,what is the projected operating income?
A)$1,000 
B)$6,000 
C)$4,500 
D)$18,500

Quizplus · Accepted Answer

Projected operating income = ($25,000 × 0.5)− ($10,000 × 0.5)− $3,000 = $4,500