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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?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:45 pm ad1c9bdddf
    https://brainmass.com/business/accounting/net-operating-income-73523

    Solution Preview

    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 ...

    Solution Summary

    Net operating income is solved.

    $2.19

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