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Question(s) / Instruction(s):

A company has provided the following data:

Sales                    3,200 units 

Sales price         $74 per unit 

Variable cost    $52 per unit 

Fixed cost          $25,200 

If the dollar contribution margin per unit is increased by 6%, total fixed cost is decreased by 16%, and all other factors remain the same, net operating income will:

a)            increase by $21,168.

b)            increase by $3,848.

c)            increase by $8,256.

d)            increase by $70,592.

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