If a Company Increases Advertising by $500,000, This Will Cause

Multiple Choice

If a company increases advertising by $500,000, this will cause net operating income to increase if the resulting increase in sales dollars is greater than:

A) $500,000.
B) $500,000 divided by the percentage increase in advertising.
C) $500,000 divided by the degree of operating leverage.
D) $500,000 divided by the contribution margin ratio.