Variable costs as a percentage of sales for Lemon Inc. are 62%, current sales are $563,000, and fixed costs are $189,000. How much will operating income change if sales increase by $39,200

Effect on income= $14,896 increase

Explanation:

Giving the following information:

Variable costs= 62% of sales

Current sales are $563,000

Fixed costs are $189,000.

Sales increase by $39,200.

To calculate the effect on income, we need to use the following formula:

Effect on income= sales increase*contribution margin ratio

Effect on income= 39,200*(1 - 0.62)

Effect on income= $14,896 increase

Prove:

Actual income= 563,200*0.38 - 189,000= 25,016

New income= 602,400*0.38 - 189,000= 39,912

Difference= $14,896 increase

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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