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    Survey of Accounting Study Set 7
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    Exam 11: Cost-Volume-Profit Analysis
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    Variable Costs as a Percentage of Sales for Protoveo Inc
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Variable Costs as a Percentage of Sales for Protoveo Inc

Question 3

Question 3

Multiple Choice

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) $3,500 decrease
C) $3,250 decrease
D) $3,500 increase.

Correct Answer:

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