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Cindy,IncSells a Product for $10 Per Unit

Question 153

Multiple Choice

Cindy,Inc.sells a product for $10 per unit.The variable expenses are $6 per unit,and the fixed expenses total $35,000 per period.By how much will net operating income change if sales are expected to increase by $40,000?


A) $16,000 increase
B) $5,000 increase
C) $24,000 increase
D) $11,000 decrease

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