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How much will operating income change

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Question - Variable costs as a percentage of sales for Lemon Inc. are 67%, current sales are $505,000, and fixed costs are $185,000. How much will operating income change if sales increase by $49,900?

a. $33,433 increase

b. $16,467 decrease

c. $16,467 increase

d. $33,433 decrease

Reference no: EM132508785

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