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10. A company believes that if it spends $25,000 on an advertising campaign for one of its segments, there will be a 20% increment in

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10. A company believes that if it spends $25,000 on an advertising campaign for one of its segments, there will be a 20% increment in the segment's sales. The contribution margin for the segment is 60% of sales. Sales for the segment are expected to be $400,000 before the advertising campaign Common costs for the company are $60,000. The relationship of costs to sales is expected to remain the same. The incremental net operating income if the advertising campaign is undertaken is expected to be: a. $65,000 c. $33,000 e. None of the above. The answer is b. $53,000 d. $23,000

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