How much will operating income change

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Question - Variable cost as a percentage of sales for Lemon Inc. are 74%, current sales are $687,000, and fixed costs are $196,000. How much will operating income change if sales increase by $46,200?

a. $34,188 decrease

b. $34,188 increase

c. $12,012 increase

d. $12, 012 decrease

Reference no: EM132479026

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