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RGB Corporation has sales revenue of $171,000, variable expenses of $84,000, and fixed expenses of $39,000. If the company's sales volume increases by 20%, how

RGB Corporation has sales revenue of $171,000, variable expenses of $84,000, and fixed expenses of $39,000. If the company's sales volume increases by 20%, how will this change their operating income?

  • A
  • :
  • Operating income will increase by $9,600.
  • B
  • :
  • Operating income will increase by $65,400.
  • C
  • :
  • Operating income will increase by 36.25%.
  • D
  • :
  • Operating income will increase by 20%.

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