How much operating income increase per month


Response to the following problem:

Murphy Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $8 of variable costs to make. During April, 700 drives were sold. Fixed costs for April were $4 per unit for a total of $2,800 for the month. How much does Murphy's operating income increase for each $1,000 increase in revenue per month?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: How much operating income increase per month
Reference No:- TGS02077958

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)