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Regular Super Total Units 15, 000 3,090 18, 090 Sales revenue $450, 000 $720, 000 $1, 170, 000 Less: Cost of goods sold 340, 000

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Regular Super Total Units 15, 000 3,090 18, 090 Sales revenue $450, 000 $720, 000 $1, 170, 000 Less: Cost of goods sold 340, 000 360, 000 700, 000 Gross Margin $110,000 $360, 000 470,000 Less: Selling expenses 110, 000 154, 000 264,000 Operating income (loss) $ $206, 000 206,000 Fixed manufacturing costs Included in cost of goods sold amount to $4 per unit for Regular and $20 per unit for Super. Variable selling expenses are $5 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed. If Omar Industries eliminates Regular and uses the available capacity to produce and sell an additional 1,500 units of Super, what would be the Impact on operating Income? Multiple Choice O $85.000 increase O $115,000 increase O $64.000 increase O $70,000 increase O None of the answers is correct

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