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Last year, Neptune Corporation had sales of $742,000 and paid taxes of $86,000. Because of the low interest rate environment, the form also borrowed some
Last year, Neptune Corporation had sales of $742,000 and paid taxes of $86,000. Because of the low interest rate environment, the form also borrowed some money from the local bank and paid $32.000 in interest expense. In addition, the firm incurred Variable costs and Fixed Costs of $242.000 and S270,000 respectively if sales increase by 5%, what should be the percentage change in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN IF YOUR ANSWER IS 7.7011%. FOR EXAMPLE, ENTER 7.70
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