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calor Spice Inc.s unit selling price is $46, the unit variable costs are $39, fixed costs are $101,000, and current sales ar
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Answer #1

OPTION- D $37,800 Increase.

Increase in operating income = Increase in units × Contribution margin per unit.

Contribution Margin = Selling price per unit - Variable cost per unit.

Contribution margin = $46 - 39 = $7.

Increase in operating income = 5,400 units × $7 = $37,800 Increase.

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