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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 overhead
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, then 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
h. Cannot be determined
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