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A company has provided the following data: Sales = 4,000 units, sales price = $80 per unit, Variable cost = $50 per unit, fixed cost
A company has provided the following data: Sales = 4,000 units, sales price = $80 per unit, Variable cost = $50 per unit, fixed cost = $30,000. If the dollar contribution margin per unit is increased by 10 percent, total fixed cost is decreased by 15 percent, and all other factors remain the same, will net operating income increase or decrease?and By how much? Please show me how you got the answer as I need to show my work. Thank You
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