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How much will the operating income change

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Reference no: EM132829844

Problem 1: Hugo Inc. would like to increase operating income for the single product the company sells. The marketing manager believes that a 10% increase in the selling price will lead to a 20% reduction unit sales. Each unit sells for $15. Total variable expenses of 180 000 and fixed expenses of 90 000 led to an operating income of 30 000. If Hugo Inc. Increased the selling price by 10% by how much will the operating income change?

Reference no: EM132829844

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