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How to calculate the operating income to be earned

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Reference no: EM132568900

ABC Company reports the following operating results for the month of August: sales $340,000 (units 5,000): variable costs $215,000; and fixed costs $74,000. Management is considering the following independent courses of action to increase operating income:

Reduce variable costs to 50% of sales

Question 1: Calculate the operating income to be earned.

Reference no: EM132568900

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