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Violet Sales Corp, reports the year end information from 2016 as follows: Sales (35,625 unita) $285,000 Cost of goods sold 122.000 Gross margin 163,000 Operating

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Violet Sales Corp, reports the year end information from 2016 as follows: Sales (35,625 unita) $285,000 Cost of goods sold 122.000 Gross margin 163,000 Operating expenses 150,000 Operating income $13.000 Violet is developing the 2016 budget. In 2016 the company would like to increase selling prices by 4.5%, and as a result expects a decrease in sales volume of 13%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost Should Violet increase the selling price in 20167 No, because sales volume decreases for 2016 No, because operating income decreases for 2016 Yes, because sales revenue increases for 2016 Yes, because gross margin increases for 2016

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