Question: The Table Clock Company sells a particular clock for $45. The variable costs are $22 per clock and the breakeven point is 260 clocks. The
The Table Clock Company sells a particular clock for $45. The variable costs are $22 per clock and the breakeven point is 260 clocks. The company expects to sell 310 clocks this year. If the company actually sells 420 clocks, what effect would the sale of additional 110 clocks have on operating income? Explain your answer.

The sale of an additional 110 clocks would operating income by the amount of The total effect would amount to $
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