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Murphy Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $8 of variable costs to make. During April, 700 drives were
sold. Fixed costs for April were $4 per unit for a total of $2,800 for the month. How much does Murphy’s operating income increase for each $1,000 increase in
revenue per month?
sold. Fixed costs for April were $4 per unit for a total of $2,800 for the month. How much does Murphy’s operating income increase for each $1,000 increase in
revenue per month?