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# *Pick 1 & show calculation* Thank you Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of \$ 500,000 per year...

*Pick 1 & show calculation* Thank you
Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of \$ 500,000 per year (50,000 units at \$ 10 each). The fixed costs are \$80,000 per year and inventory levels are declining. If sales increase by 10,000 units in the coming year, how much increase in income is expected?

A) \$ 50,000
B) \$ 35,000
C) \$ 40,000
D) \$ 75,000

Old Line Hobby is selling a car care product with a contribution margin of 50% on sales of \$ 500,000 per year (50,000 units at \$ 10 each). The fixed costs are \$80,000 per year and inventory levels...

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