Answer the following questions using the information below:
Kelly's Armoured Suits sells a single product.10 000 units were sold resulting in $100 000 of sales revenue,$40 000 of variable costs,and $12 000 of fixed costs.
-If sales increase by $25 000,operating profit will increase by:
A) $10 000.
B) $15 000.
C) $22 200.
D) None of these answers are correct.
Correct Answer:
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