Question

For a particular company, variable costs are 65% of sales and the total contribution margin at...

For a particular company, variable costs are 65% of sales and the total contribution margin at the breakeven point is $227,500. If sales volume increases by $10,000, net operating income will increase by

A.$3,500

B.It cannot be determined from the information given

C.No choices are correct

D.It depends on whether the company is above or below the breakeven point

E.$6,500

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