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Variable costs as a percentage of sales for Lemon Inc. are 74%, current sales are $554,000, and fixed costs are $209,000. How much will operating
Variable costs as a percentage of sales for Lemon Inc. are 74%, current sales are $554,000, and fixed costs are $209,000. How much will operating income change if sales increase by $39,800?
a.$10,348 increase
b.$29,452 decrease
c.$29,452 increase
d.$10,348 decrease
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