Question: At its present level of operations, a small manufacturing firm has total variable costs equal to 65% of sales and total fixed costs equal to

At its present level of operations, a small manufacturing firm has total variable costs equal to 65% of sales and total fixed costs equal to 20% of sales. If sales change by $1.00, operating income will change by

a. $0.15

b. $0.35

c. $0.65

d. An answer can't be determined from this information.

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