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Variable costs as a percentage of sales for Lemon Inc. are 60%, current sales are $510,000, and fixed costs are $178,000. How much will operating
Variable costs as a percentage of sales for Lemon Inc. are 60%, current sales are $510,000, and fixed costs are $178,000. How much will operating income change if sales increase by $42,400?
a. $16,960 decrease
b. $16,960 increase
c. $25,440 decrease
d. $25,440 increase
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