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Management · Q237

Management Accounting

Graduate and Post Graduate · Management · question 237

Q237

If variable cost is 50000 and fixed cost is 30000, then operating income would be

A.
$80,000
B.
$160,000
C.
$16,000
D.
$20,000
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Operating income = Variable cost - Fixed cost
= 30000 = $20,000.