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Question
Victory Company makes a special kind of racing tire. Variable costs are $220, and fixed costs are $30,000 per month. Victor sells 500 units per month at a price of $300. If Victory upgrades the quality of the tire, they believe they can boost the price up to $340. If so, the variable cost will go up to $230 and the fixed costs will rise by 50%. If Victory decides to upgrade, how will it affect operational income?
A) Go down $1,250
B) Go down $4,500
C) Go up $12,500
D) Remain the same
Answer
This answer is hidden. It contains 134 characters.
Related questions
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Sep Cash collections
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C) account form balance sheet.
D) audited form balance sheet.
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B) posting.
C) proofing.
D) footing.
Q:
A) chart of accounts.
B) ledger.
C) trial balance.
D) journal.
Answer: B
Q:
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B) Revenues decrease owner's equity, so a revenue account's normal balance is a debit balance.
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Q:
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B) finding the account number in the chart of accounts.
C) recording the transaction, including a brief explanation.
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Q:
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C) $12,000 Favorable
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