Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. company a company b sales revenue $ 1,000 $ 2,000

Company A Company B Sales revenue $ 1,000 $ 2,000 Cost of goods sold (600)...

70.2K

Verified Solution

Question

Accounting

Company A Company B Sales revenue $ 1,000 $ 2,000 Cost of goods sold (600) (1,100) Gross margin 400 900 Operating expenses (220) (700) Operating income 180 200 Gain on sale of equipment 0 0 Net income $ 180 $ 200

Assume both companies receive a $1,000 increase in sales and the return on sales ratio does not change. Under these circumstances

Company A's operating income would increase by $180. Company B's operating income would increase by $200. Both answers are correct. Neither answer is correct.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Choose a natural disaster in your state or that you followed in the news. How did the...

Physics
1.2K views

Column I contains a list of processes involving expansion of an ideal gas Match this...

Physics
1.2K views

The Army Corp of Engineers is working on the dam that holds back Boone Lake....

Physics
1.2K views

Explain your answer westion FIVE Archimedes Principle 2 4 4 State Archimedes principle A cube...

Basic Math
1.2K views

Let f x log3 x 3 and g x log3 x 1 Part A If...

Statistics
1.2K views

Sample A has 796 number of successes from a sample size of 805 Sample B...

Algebra
1.2K views

6 Consider the graph of the function f given below Fill the table to the...

Accounting
1.2K views

Which of the following is not normally considered a

Accounting
1.2K views

ABC Company had the following transactions pertaining to its stock investments: Feb. 1...

Accounting
1.2K views

Suppose Mr. Agirich has decided to buy a center pivot irrigation system but can't decide...

Accounting
1.2K views

Melissa recently paid $400 for round-trip airfare to San Francisco to attend a business conference...

Finance
1.2K views

You have $91,190 to invest in two stocks and the risk-free security. Stock A has...