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Zipee Inc'S Unit Selling Price Is $90, Unit Variable Costs Are

Question 118

Multiple Choice

Zipee Inc.'s unit selling price is $90, unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units?


A) $125,000 decrease
B) $175,000 increase
C) $75,000 increase
D) $247,500 increase

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