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iii) Last year, Mikasa Technology had sales of RM500,000, fixed costs of RM100,000, and net operating income of RM30,000. a) If sales increase by 20

iii) Last year, Mikasa Technology had sales of RM500,000, fixed costs of RM100,000, and net operating income of RM30,000.

a) If sales increase by 20 percent, by how much will the firm's net operating income increase? (2 Marks)

b) What would happen to the firm's net operating income if sales decrease by 20 percent? (2 Marks)

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