How much will net operating income change, Accounting Basics

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How much will net operating income change

Question:

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By how much will net operating income change if sales are expected to increase by $40,000?

A) $16,000 increase
B) $5,000 increase
C) $24,000 increase
D) $11,000 decrease

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Accounting Basics: How much will net operating income change

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