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The February contribution format income statement of Caines Corporation appears below: Sales $ 259,200 Variable expenses 176,400 Contribution margin 82,800 Fixed expenses 59,100 Net operating

The February contribution format income statement of Caines Corporation appears below:

Sales

$ 259,200

Variable expenses

176,400

Contribution margin

82,800

Fixed expenses

59,100

Net operating income

$ 23,700

If the company's sales increase by 18%, its net operating income should increase by about:

Answer

18%

197%

9%

63%

Please do not copy the answers previously given by others to this question. None of them match the possible answers or appear to be just guesses. Please provide supporting work for answer.

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