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Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $12,700 per month. If Pharoah were to increase

Assume that variable costs increase to 46% of the current sales price and fixed costs increase by $12,700 per month. If Pharoah were to increase its selling price by 12% to cover these new costs, but the number of blankets sold were to decrease by 5%, what would be the new annual operating income?

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