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Author Question: Craylon Manufacturing produces a single product that sells for $140. Variable costs per unit equal ... (Read 120 times)

cherise1989

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Craylon Manufacturing produces a single product that sells for $140. Variable costs per unit equal $35. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertising expenses by $11,000. What is the effect on operating income with the increase of advertising expenses?
◦ Operating income will decrease by $11,000.
◦ Operating income will increase by $11,000.
◦ Operating income will decrease by $86,500.
◦ Operating income will increase by $86,500.


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Marked as best answer by cherise1989 on Mar 6, 2021

joechoochoy

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cherise1989

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Reply 2 on: Mar 6, 2021
Wow, this really help


duy1981999

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Reply 3 on: Yesterday
Excellent

 

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