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bernie2981 bernie2981
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8 years ago
Prince Paper has budgeted the following amounts for its next fiscal year:

Total fixed expenses   $500,000
Selling price per unit   $75
Variable expenses per unit   $25

If Price Paper spends an additional $12,500 on advertising, sales volume should increase by 2,300 units. What effect will this have on operating income?
A) Decrease of $115,000
B) Increase of $102,500
C) Increase of $115,000
D) Decrease of $102,500
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
Answers my question perfectly.
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