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Calculate the operating income to be earned

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Joblow company reports the following operating results for the month of August: sales $340,000 (units 5,000): variable costs $215,000; and fixed costs $74,000. Management is considering the following independant courses of action to increase operating income. increase the selling price by 8% with no change in total variable costs.

Question 1: Calculate the operating income to be earned under each alternative. Which course or action will produce the higher operating income.

Reference no: EM132568866

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