Lincoln Lodging Inc. estimates that if its sales increase 10.00% then its net income will increase 15.00%. The company's EBIT equals $2.4 million, and its interest expense is $400,000. The company's operating costs include fixed and variable costs. What is the level of the company's fixed operating costs? Do not round your intermediate calculations.
A. $720,000
B. $558,000
C. $624,000
D. $600,000
E. $534,000
Answer: D
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