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At the end of the accounting period Weaver, Inc. reports operating income of $50,000, a contribution margin of $15, and a fixed overhead rate of
At the end of the accounting period Weaver, Inc. reports operating income of $50,000, a contribution margin of $15, and a fixed overhead rate of $6 per unit. Under variable costing, if this company produces 100 more units of inventory, then operating income:
a. will not be affected
b. will increase by $1,500
c. will decrease by $1,500
d. will increase by $900
e. will decrease by $900
f. will increase by $600
g. will decrease by $600
h. Cannot be determined
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