Operating income and net income


Given the following information:

Total assets:                        250,000
Debt (12% interest rate):     $150,000
Equity:                                 $40,000
Variable cost of production:        $150 per unit
Fixed cost of production:        $50,000
Units sold:                                 1000
Sales price:                               $210 per unit

What happens to operating income and net income when revenue is increased by 10 percent?

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Finance Basics: Operating income and net income
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