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How much increase in income is expected

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Question - Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of $ 500,000 per year (50,000 units at $ 10 each). The fixed costs are $80,000 per year and inventory levels are declining. If sales increase by 10,000 units in the coming year, how much increase in income is expected?

A) $ 50,000

B) $ 35,000

C) $ 40,000

D) $ 75,000

Reference no: EM131807128

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