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Variable costs as a percentage of sales for Protoveo Inc. are 65%, sales are $500,000, and fixed costs are $125,000. How much would operating income

Variable costs as a percentage of sales for Protoveo Inc. are 65%, sales are $500,000, and fixed costs are $125,000. How much would operating income change if sales decrease by $10,000?

a. $3,500 increase

b. $3,250 increase

c. $3,500 decrease

d. $3,250 decrease

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