Salter inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. how much will operating income change if sales increase by 5,000 units?

$75,000

Explanation:

Given that,

Unit selling price = $50

Unit variable costs = $35

Fixed costs = $125,000

current sales = 10,000 units

Contribution margin per unit:

= Selling price per unit - unit variable costs

= $50 - $35

= $15

Change in Operating income if sales increase by 5,000 units:

= Increase in sales × Contribution margin per unit

= 5,000 units × $15

= $75,000

answer; i believe the correct answer is (75 years);

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