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    Calculation of Operating Income and Net Incomes

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    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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    https://brainmass.com/business/finance/calculation-operating-income-net-incomes-590208

    Solution Preview

    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 is increased by 10 percent?
    Verify your answer.

    Calculation for operating ...

    Solution Summary

    This solution clearly illustrates in a step-by-step process on how to calculate operating income and net income from predetermined financial values.

    $2.19

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