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Question: Given the following information:

Total assets	$100,000
Debt (12% interest rate)	$80,000
Equity	$20,000
Variable costs of production	$14 per unit
Fixed cost of production	$27,000
Units Sold	12,300
Sales price	$19.75 per unit

What happens to operating income and net income if output is increased by 10 percent? Verify your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9792551

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