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Assume that all costs other than cost of the tent are fixed

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Question

Martin Supply, Ltd. sells tents at a 4-person tent price of $250. Martin Supply purchases the tents from a supplier at a cost of $100 per tent. Last year the company sold 2,000 and generated operating income of $75,000. What would operating income have been if the company had sold 2 additional tents? Assume that all costs other than the cost of the tent are fixed.

Reference no: EM133340146

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