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The Rial Company's Income Statement for June Is Given Below

Question 115

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The Rial Company's income statement for June is given below:The Rial Company's income statement for June is given below:  -A proposal has been made that will lower variable expenses in Division L to 35% of sales.However,this reduction can only be accomplished by a $15,000 increase in Division L's traceable fixed expenses.If this proposal is implemented and if sales remain constant,overall company net operating income should: A) increase by $15,000 B) increase by $24,000 C) decrease by $15,000 D) decrease by $6,000
-A proposal has been made that will lower variable expenses in Division L to 35% of sales.However,this reduction can only be accomplished by a $15,000 increase in Division L's traceable fixed expenses.If this proposal is implemented and if sales remain constant,overall company net operating income should:


A) increase by $15,000
B) increase by $24,000
C) decrease by $15,000
D) decrease by $6,000

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