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8. Zippy Company has a product which it currently sells in the market for $50 per unit. Zippy has developed a new feature which, if

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8. Zippy Company has a product which it currently sells in the market for $50 per unit. Zippy has developed a new feature which, if added to the existing product, will allow Zippy to receive a price of $65 per unit. The cost of adding this new feature is $26,000 and Zippy expects to sell 1,600 units over the next year. What is the effect on operating income of adding the feature to the product? A. $2,000 increase in operating income. B. $3,000 decrease in operating income. C. $3,500 increase in operating income. D. $4,000 decrease in operating income. E. $2,000 decrease in operating income. (2 Marks)

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