Question: Sunflower Breads Inc. is a start-up making various breads from sunflower flour. It is a new concept, and they were not sure how successful it

Sunflower Breads Inc. is a start-up making various breads from sunflower flour. It is a new concept, and they were not sure how successful it would be. Now, after several months in business, they are rapidly growing! They anticipate a 40% increase in sales between July and August. The July numbers are as follows: Sales= $125,000, variable costs= $40,000 and fixed costs are $32,500.

What will their operating income be for August if fixed expenses remain stable?

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