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Molina Company has provided the following information: Sales $ 782 comma 000$782,000 Variable expenses 507 comma 000507,000 Fixed expenses 215 comma 000215,000 Which of the
Molina Company has provided the following information:
Sales | $ 782 comma 000$782,000 |
Variable expenses | 507 comma 000507,000 |
Fixed expenses | 215 comma 000215,000 |
Which of the following statements is true, if the sales volume increases by
1010%?
A.
Contribution margin will increase by
$ 78 comma 200$78,200.
B.
Operating income will increase by
$ 27 comma 500$27,500.
C.
Operating income will increase by
$ 6 comma 000$6,000.
D.
Fixed expenses will increase by
$ 21 comma 500$21,500.
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