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Examveda

If revenue is $15000, total variable cost is $5000 and fixed cost $2000 then operating income will be

A. $4,000

B. $8,000

C. $5,000

D. $3,000

Answer: Option B

Solution(By Examveda Team)

Operating income = Total revenue - Variable cost - Fixed cost
= $15000 - $5000 - $2000 = $8,000.

This Question Belongs to Management >> Management Accounting

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