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*Pick 1 & show calculation* Thank you Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of $ 500,000 per year...

*Pick 1 & show calculation* Thank you
Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of $ 500,000 per year (50,000 units at $ 10 each). The fixed costs are $80,000 per year and inventory levels are declining. If sales increase by 10,000 units in the coming year, how much increase in income is expected?

A) $ 50,000
B) $ 35,000
C) $ 40,000
D) $ 75,000

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Accounting-8211032.xls

Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of $ 500,000 per year (50,000 units at $ 10 each). The fixed costs are $80,000 per year and inventory levels...

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