What happens to the operating income and net income if

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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.

Reference no: EM13477375

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