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Author Question: Sally Corporation management has budgeted the following amounts for its next fiscal year:Total fixed ... (Read 98 times)

jwb375

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Sally Corporation management has budgeted the following amounts for its next fiscal year:

Total fixed expenses$425,000
Sale price per unit$50
Variable expenses per unit$30

If Sally Corporation spends an additional $15,000 on advertising, sales volume should increase by 1,000 units. What effect will this have on operating income?
◦ Increase of $20,000
◦ Increase of $5,000
◦ Decrease of $5,000
◦ Decrease of $20,000


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Marked as best answer by jwb375 on Jan 5, 2020

scottmt

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jwb375

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Reply 2 on: Jan 5, 2020
Wow, this really help


skipfourms123

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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