Variable costs as a percentage of sales for Lemon Inc. are 71%, current sales are $526,000, and fixed costs are $178,000. How much will operating income change if sales increase by $45,800?

There will be a operating loss of $12,178

Step-by-step explanation:

Variable costs are those will vary will the change in sale or activity level e.g material cost, labor cost etc.

Fixed costs are those which remains fix and does not vary with the change in sale or activity level.

As per Given Data

Sales = $526,000

Variable Cost = 71% of Sales

Fixed Cost = $178,000

As per Given Condition

Revised Sales = $526,000 + $45,800 = $571,800

Net Income Calculations :

Sales                         $571,800

- Variable cost 71%   $405,978

- Fixed Cost              $178,000

= Operating loss      $12,178

it is probably the graph on the bottom right.

the entire expression should be subtracted from 30. to subtract the quantity, distribute the negative sign, which changes the signs on the terms. so, the –2 changes to positive and gets added to 30 instead of subtracted from it.

hope this ! ^w^