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Last year, the company sold 200 units with the price of $12. Costs incurred were...

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Accounting

Last year, the company sold 200 units with the price of $12. Costs incurred were $400 total fixed costs and $8 variable cost per unit. Through value engineering this year, the company will be able to reduce fixed costs to $300 which will help the company reduce its price to $11. With new price, the demand is expected to increase to 250 units. If VE is implemented, how much will operating income increase?

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