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The Clyde Corporation's Variable Expenses Are 35% of Sales

Question 57

Multiple Choice

The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $25,000. If sales increase by $75,000, the company's net operating income will increase by:


A) $26,250
B) $23,750
C) $1,250
D) $65,000

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