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Dunbar Manufacturing's Variable Costs Are 30% of Sales

Question 124

Multiple Choice

Dunbar Manufacturing's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $55000. If sales are expected to increase $100000 by how much will the company's net income increase?


A) $45000
B) $70000
C) $30000
D) $15000

Correct Answer:

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