Question: Spice Inc.'s unit selling price is $53, the unit variable costs are $38, fixed costs are $110,000, and current sales are 10,500 units. How much
Spice Inc.'s unit selling price is $53, the unit variable costs are $38, fixed costs are $110,000, and current sales are 10,500 units. How much will operating income change if sales increase by 5,000 units?
a.$232,500 increase
b.$157,500 increase
c.$157,500 decrease
d.$75,000 increase
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