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In June we sold 15,000 units. Fixed costs in June were $120,000. The variable cost per unit is $80, and the sales price is $105.

In June we sold 15,000 units. Fixed costs in June were $120,000. The variable cost per unit is $80, and the sales price is $105.

In July, variable costs will increase by 20% per unit. We will sell the same number of units in July. How much lower will July net income be (as compared to June)? Write your answer as a positive number, do not put a negative sign in your answer.

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