Problem
Combs, Inc., reports the following information for May sales:
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Sales
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$300,000
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Variable costs
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100,000
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|
Fixed costs
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40,000
|
|
Operating income
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$160,000
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Required: The questions below are independent of each other, so go back to the original information above when you answer the question. Fill in the table below to answer the questions. Do not use dollar signs, but do use commas.
1. If sales volume triple in May, what is the projected operating income?
2. If sales volume decrease by 20%, what is the projected operating income?
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Original
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#1 Sales triple
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#2 Decrease of 20% in sales
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Sales
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$300,000
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Blank 1
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Blank 2
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|
Variable costs
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100,000
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Blank 3
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Blank 4
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|
Fixed costs
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40,000
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Blank 5
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Blank 6
|
|
Operating income
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$160,000
|
Blank 7
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Blank 8
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