Omega Company has sales of $300,000 and cost of goods sold of $200,000. The cost of goods sold is a variable cost. The Company incurred $20,000 of fixed operating expenses and $40,000 of variable operating expenses. Based on this information a 10% increase in revenue will produce a:.
A) 15.0 % change in net income.
B) 11.5 % change in net income.
C) 20.0 % change in net income.
D) 10.0 % change in net income.

A 10% increase in revenue will produce a A) 15.0 % change in net income

Explanation:

Net income before increasing in revenue = sales - Cost of goods sold - Variable operating expenses - fixed operating expenses = $300,000 - $200,000 - $40,000 - $20,000 = $40,000

Revenue after increasing = $300,000 + $300,000 x 10% = $330,000

When revenue increase, variable costs will increase.

Cost of goods sold = $200,000 + $200,000 x 10% = $220,000

Variable operating expenses = $40,000 + $40,000 x 10% = $44,000

Net income after increasing in revenue = sales - Cost of goods sold - Variable operating expenses - fixed operating expenses = $330,000 - $220,000 - $44,000 - $20,000 = $46,000

Change in net income = ($46,000 - $40,000)/$40,000 = 15.0%

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.