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Austin Corporation has provided its contribution format income statement for August: Sales 153,300 Variable expenses 94,900 Contribution margin 58,400 Fixed expenses 50,300 Net operating income
Austin Corporation has provided its contribution format income statement for August:
Sales | 153,300 | ||
Variable expenses | 94,900 | ||
Contribution margin | 58,400 |
Fixed expenses | 50,300 | ||
Net operating income | 8,100 |
If the companys sale increases by 10%, its net operating income should increase by
a. 13,940
b. 5,840
c. 1,394
d. 5,804
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