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Orthotics Company distributes a specialized ankle support that sells for $30. The companys variable costs are $18 per unit; fixed costs total $360,000 per year.

Orthotics Company distributes a specialized ankle support that sells for $30. The companys variable costs are $18 per unit; fixed costs total $360,000 per year. Required a. If sales increase by $39,000 per year, by how much should operating income increase? b. Last year, Carr sold 36,000 ankle supports. The companys marketing manager is convinced that a 10% reduction in the sales price, combined with a $90,000 increase in advertising, will result in a 38% increase in

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