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How much will operating income will increase by

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Reference no: EM132735793

Problem 1: A company has sales of $87,500 at the break even point and fixed costs are $35,000. Assuming cost behaviour does not change if sales increase by $20,000 how much will operating income will increase by?

A. $20,000.00.

B. $12,000.00.

C. $8,000.00.

D. $4,000.00.

Reference no: EM132735793

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