Figure 8-7
the Income Statement for Thomas Manufacturing Company for 2011

Figure 8-7
The income statement for Thomas Manufacturing Company for 2011 is as follows: $\begin{array}{lr}\text { Sales }(10,000 \text { units) } & £ 120,000 \\\text { Variable expenses } & 72,000 \\\text { Contribution margin } & £ 48,000 \\\text { Fixed expenses } &{36,000}\\\text { Operating income } & £ 12,000\end{array}$
-Refer to Figure 8-7. If sales increase by £60,000, what will happen to profit?

A) increase by £60,000
B) increase by £24,000
C) increase by £6,000
D) increase by £36,000

Correct Answer:

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