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Management · Q232

Management Accounting

Graduate and Post Graduate · Management · question 232

Q232

If revenue is 15000, total variable cost is 5000 and fixed cost 2000 then operating income will be

A.
$4,000
B.
$8,000
Answer
C.
$5,000
D.
$3,000

Answer: Option B

Solution

Answer: Option B
Solution:
Operating income = Total revenue - Variable cost - Fixed cost
= 5000 - 8,000.