Blane Company has the following data: Total Sales 800,000, Total Variable Costs 300,000, Fixed Costs 200,000, Units Sold 50,000, What will operating income be if units sold double to 100,000 units?

800,000 Sales doubles, variable costs double.

1600000-800000=^^

To find the operating income if units sold double to 100,000 units, we need to calculate the new total sales and the new total variable costs.

First, let's calculate the new total sales:
Total sales = Units sold * Selling price per unit
Since the selling price per unit is not provided, we cannot calculate the exact total sales. We need this additional information in order to proceed with the calculation.

To find the operating income when units sold double, we first need to calculate the new values for Total Sales and Total Variable Costs.

Total Sales is the revenue generated from the sale of units. It can be calculated by multiplying the number of units sold (50,000) by the price per unit. However, since the price per unit is not provided in the data, we cannot directly calculate Total Sales. Therefore, we will assume that the price per unit remains constant.

Let's assume the price per unit is P.

Total Sales = Units Sold * Price per unit = 50,000 * P

Total Variable Costs is the sum of costs that vary with the number of units sold. It is given as 300,000.

Now, since the units sold double to 100,000, we can find the new Total Sales and Total Variable Costs.

New Total Sales = Units Sold * Price per unit = 100,000 * P
New Total Variable Costs = 300,000 (remains constant)

To find the operating income, we need to subtract Total Variable Costs and Fixed Costs from Total Sales.

Operating Income = Total Sales - Total Variable Costs - Fixed Costs

If we substitute the new values into the formula, we get:

Operating Income = New Total Sales - Total Variable Costs - Fixed Costs
= (100,000 * P) - 300,000 - 200,000
= 100,000 * P - 500,000

Therefore, to calculate the operating income, we need to know the price per unit (P). With this information, we can multiply it by 100,000 and subtract 500,000 from the result to find the operating income.