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net operating income

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Information concerning Label Corporation's operations follow:
Sales...$300,000
Variable expenses...$240,000
Fixed expenses...$40,000

Assuming that Label increased sales by 20%, what should net operating income be?

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Net operating income is solved.

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Hello!
If sales increase, then expenses probably increased too.

- Fixed expenses are fixed, so they are not changed when sales increase. So Fixed Expenses after the sales increase remain at $40,000

- Variable ...

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