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j22 j22
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2 months ago
Brandi's Bakery sells strawberry cakes for $15 each. Last month Brandi sold 1,200 cakes. Variable costs were $5 per cake and fixed costs totaled $3,000. This month, Brandi has decided to spend $1,000 to sponsor a team for a Relay for Life golf tournament. She believes that the additional advertising from the sponsorship will generate 10% more sales than last month. What will be this month's operating income?

▸ $10,200

▸ $9,200

▸ $9,000

▸ $8,000
Textbook 

Managerial Accounting


Edition: 4th
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naj2008hnaj2008h
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2 months ago
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$9,200

(($15 - $5) × (1,200 × 1.10)) - $4,000 = $9,200
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j22 Author
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2 months ago
this is exactly what I needed
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Brilliant
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2 hours ago
You make an excellent tutor!
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