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Jansen Inc

Question 18

Multiple Choice

Jansen Inc. currently produces and sells 9,000 units per year with the following cost data: Jansen Inc. currently produces and sells 9,000 units per year with the following cost data: Next year, Jansen plans to increase its advertising budget, which will increase fixed costs by 7%. With increased advertising, the company expects the number of units produced and sold to increase by 12%. Determine the budgeted total cost for next year. A) $70,500 B) $78,060 C) $78,585 D) $71,025 Next year, Jansen plans to increase its advertising budget, which will increase fixed costs by 7%. With increased advertising, the company expects the number of units produced and sold to increase by 12%. Determine the budgeted total cost for next year.


A) $70,500
B) $78,060
C) $78,585
D) $71,025

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