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Dunbar Manufacturing's Variable Costs Are 30% of Sales

Question 9

Multiple Choice

Dunbar Manufacturing's variable costs are 30% of sales.The company is contemplating an advertising campaign that will cost $44,000.If sales are expected to increase $80,000, by how much will the company's net income increase?


A) $36,000
B) $56,000
C) $24,000
D) $12,000

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