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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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