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Question(s) / Instruction(s):

Riven Corporation has a single product whose selling price is $12. At an expected sales level of $1,284,000, the company\'s variable expenses are $535,000 and its fixed expenses are $296,000. The marketing manager has recommended that the selling price be increased by 20%, with an expected decrease of only 11% in unit sales. What would be the company\'s net operating income if the marketing manager\'s recommendation is adopted?

A.            $453,000

B.            $599,162

C.            $540,312

D.            $1,075,312

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