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Question - Riven Corporation has a single product whose selling price is $18. At an expected sales level of $2,088,000, the company's variable expenses are $696,000 and its fixed expenses are $289,000. The marketing manager has recommended that the selling price be increased by 30%, with an expected decrease of only 9% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?
a) $1,547,744
b) $2,181,104
c) $1,103,000
d) $1,485,104
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