Variable costs as a percentage of sales

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Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $40,000?

a) $10,000 increase

b) $10,000 decrease

c) $30,000 decrease

d) $30,000 increase

Reference no: EM13123289

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