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A firm has revenues of $100,000, a contribution margin ratio of 40%, and fixed expenses that total $25,000. If revenues increase by $20,000, then: A.

A firm has revenues of $100,000, a contribution margin ratio of 40%, and fixed expenses that total $25,000. If revenues increase by $20,000, then: A. fixed expenses will increase $8000. B. operating income will increase by $8000. C. operating income will be O. D. the contribution margin ratio will increase by 40%

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