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Mathtots managers have determined that variable costs per

Question: MathTot's managers have determined that variable costs per unit will increase by 16% beginning next month. To offset this increase in costs, they are considering a 10% increase in the sales price. Market research indicates that the price increase will result in a 2% decrease in the number of learning systems MathTot sells. What will be MathTot's expected operating income if the price increase is implemented?

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Accounting Basics: Mathtots managers have determined that variable costs per

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