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Synergy Company Expects the Following Results for the Next Accounting

Question 87

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Synergy Company expects the following results for the next accounting period:
Synergy Company expects the following results for the next accounting period:     The sales manager believes that sales could be increased by 500 units if advertising expenditures were increased by $14,000.Which of the following is the effect on operating income if an increase in the advertising expenditures result in an increase in sales by 500 units? (Note: Round the sale price per unit and the variable cost per unit to two decimal places.)  A)  Increase of $575 B)  Increase of $220 C)  Increase of $280 D)  Increase of $450 E)  Cannot be determined from the data given The sales manager believes that sales could be increased by 500 units if advertising expenditures were increased by $14,000.Which of the following is the effect on operating income if an increase in the advertising expenditures result in an increase in sales by 500 units? (Note: Round the sale price per unit and the variable cost per unit to two decimal places.)


A) Increase of $575
B) Increase of $220
C) Increase of $280
D) Increase of $450
E) Cannot be determined from the data given

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