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Tom's Taxidermy has a monthly target operating income of $25,000. Variable expenses are 75% of sales and monthly fixed expenses are $15,000. If sales volume
Tom's Taxidermy has a monthly target operating income of $25,000. Variable expenses are 75% of sales and monthly fixed expenses are $15,000. If sales volume increases 10% next year operating income will increase? Hint: First work backwards to find the orginal contribution margin.
A.
2,500
B.
16%
C.
1.6%
D.
10%
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