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    Managerial Accounting for Undergraduates
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    Exam 6: Cost-Volume-Profit Relationships
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    Compex Inc
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Compex Inc

Question 1

Question 1

Essay

Compex Inc. produces microprocessors for laptops. Last year, the company recognized revenues of $2,000,000. Total costs for the period were $1,000,000, of which $250,000 were fixed.
If sales were to increase by $300,000, by how much would Computate's operating income increase?

Correct Answer:

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