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Question(s) / Instruction(s):

A company has provided the following data: Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will: A. increase by $61,000 B. increase by $20,000 C. increase by $3,500 D. increase by $11,000

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