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A company reported the following information for the previous month: Sales $100,000 Variable Costs 25,000 Fixed Costs 50,000 Operating Income 25,000 Required: The projected operating

A company reported the following information for the previous month:

Sales

$100,000

Variable Costs

25,000

Fixed Costs

50,000

Operating Income

25,000

Required:

The projected operating income if sales grow 20% in the next month will be

A. $60,000

B. 20% higher

C. $30,000

D. $10,000

E. $40,000

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