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By what percentage will the company operating income fall

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Reference no: EM133003308

Question - Foster's Repair Shop has a monthly target operating income of P30,000. Variable expenses are 40% of sales, and monthly fixed expenses are $7,500. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%?

A. Decline by 10%

B. Decline by 11%

C. Decline by 15%

D. Decline by 16%

Reference no: EM133003308

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