Given that the change in operating income under variable costing is $9,000 and the contribution margin per unit is $6,000, what is the change in the number of units sold?

Multiple choice question for Capacity Analysis and Inventory Costing. Select an option, then review the explanation below.

Explanation

To find the change in units sold, divide the change in operating income by the contribution margin per unit: $9,000 ÷ $6,000 = 1.5 units. Therefore, the change in sold units is 1.5 units.

Practice related questions from the same subject.

1.What term describes the operational capacity that is below the theoretical maximum capacity?
2.Under the Variable Costing approach, how are fixed manufacturing overhead costs handled during the accounting period?
3.What does the denominator represent in the fixed manufacturing cost rate calculation?
4.Which of the following is used to determine product capacity, cost analysis, performance assessment, and compliance with regulations?
5.In absorption costing, which format does the income statement typically use?

Given that the change in operating income under variable costing is $9,000 and the contribution margin per unit is $6,000, what is the change in the number of units sold?

Explanation

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