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Brandi's Bakery sells strawberry cakes for $15 each. Last month Brandi sold 1,200 cakes. Variable ...

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Brandi's Bakery sells strawberry cakes for $15 each. Last month Brandi sold 1,200 cakes. Variable ...

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

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Managerial Accounting

Edition: 4^th

Author: Davis

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