Find how much will operating income change

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Problem 1: Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $592,000, and fixed costs are $202,000. How much will operating income change if sales increase by $45,000?

a. $12,600 decrease
b. $32,400 increase
c. $12,600 increase
d. $32,400 decrease

Reference no: EM132745095

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