If the contribution margin per unit is $12300 and the change in sold quantity of units is 50, then change in variable costing operating income will be __________?
Correct answer: C. $615,000
- A. $315,000
- B. $415,000
- C. $615,000
- D. $515,000
Explanation
The change in operating income equals contribution margin per unit multiplied by the change in units sold: $12,300 × 50 = $615,000. This assumes fixed costs remain unchanged.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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