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An income statement for Crandall's Bookstore (a retail company) for the first quarter of the...

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Accounting

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An income statement for Crandall's Bookstore (a retail company) for the first quarter of the current year is presented below: $400,000 280,000 120,000 Sales Cost of Goods Sold Gross Margin Operating expenses: Selling .... Administrative Operating income $49,000 49,000 98.000 $ 22,000 On average, a book sells for $50. Variable selling expenses are $5.50 per book, with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales revenue, with the remainder being fixed. If book sales increase by 10% during the coming year due to increased demand, by how much should Crandall's operating income increase? $40,000 increase $2,200 increase $34,400 increase O $6,400 increase $12,000 increase

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