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The income statement for Alex manufacturing for 2020 is as follows :
Sales (10,000 units ) $120,000
Variable expenses $ 72,000
Fixed expenses $ 36,000
Operating income $ 12,000
Problem 1: If sales increase by 1500 units, what will happen to the profit/operating income?
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Include margin explanations for any changes in Retained Earnings and prepare an income statement for the month of June.
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