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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 78%, current sales are $557,000, and fixed costs are $194,000. How much will operating income change if sales increase by $46,300?

a. $36,114 decrease

b. $10,186 decrease

c. $36,114 increase

d. $10,186 increase

Reference no: EM133064881

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