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At the end of the accounting period Stanley, Inc . reports operating income of $24,000, a contribution margin of $12 per unit, and a fixed

At the end of the accounting period

Stanley, Inc

. reports operating income of

$24,000, a contribution margin of $12 per unit, and a fixed overhead rate of $4 per

unit. Under

variable costing

, if this company produces 50 more units of inventory, t

hen

operating income:

a.

will increase by $400

b.

will increase by $200

c.

will decrease by $600

d.

will decrease by $400

e.

will decrease by $200

f.

will increase by $600

g.

will not be affected

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