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What will be the effect on net operating income

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Question - A company makes baseballs that are sold for $5 each. Baseballs have a 40% contribution margin and fixed costs of $50,000. The company plans to make and sell 50,000 baseballs. What will be the effect on net operating income if the company increases sales by 32%?

It would increase by 32%

It would increase by 64%

It would decrease by 32%

It would decrease by 64%

Reference no: EM132973918

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