Question

Variable costs as a percentage of sales for Lemon Inc. are 66%, current sales are $605,000....

Variable costs as a percentage of sales for Lemon Inc. are 66%, current sales are $605,000. and fixed costs are $208,000. How much will operating income change if sales increase by $37,500?

a.$12,750 decrease

b.$24,750 increase

c.$12,750 increase

d.$24,750 decrease

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