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Wilson sells software during the recruiting seasons. During the current year, 10,000 software packages were sold resulting in $470,000 of sales revenue, $130,000 of variable costs, and $48,000 of fixed costs. If sales increase by $80,000, operating income will increase by ________. (Round interim calculations to two decimal places and the final answer to the nearest whole dollar.) Group of answer choices $48,000 $57,872 $32,000

User Juha
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Answer:

$57,872

Step-by-step explanation:

Calculation to determine what the operating income will increase by

Price = $470,000 / 10,000

Price= $47.00

Sales in software packages = $80,000 / $47.00 Sales in software packages= 1,702.13 software packages

Operating income increase = 1,702.13 × $34.00 per

Operating income increase = $57,872

Therefore the operating income will increase by

$57,872

User Nithin Jose
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