Find how much will operating income change

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Problem 1: Variable costs as a percentage of sales for Lemon Inc. are 76%, current sales are $583,000, and fixed costs are $184,000. How much will operating income change if sales increase by $35,400?

a. $8,496 increase
b. $8,496 decrease
c. $26,904 decrease
d. $26,904 increase

Reference no: EM132805870

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