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Question - Arthur Company had the following data for the year just ended:
Sales 4,000 units
Sales price $60 per unit
Variable cost $18 per unit
Fixed costs $42,000
If the company's sales volume increases by 30% next year, all other factors remaining the same, by how much will its operating income increase?
a. $50,400.
b. $72,000.
c. $92,400.
d. $37,800.
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