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5) Fairfeld Company management has budgeted the following amounts for its next fiscal year Total fixed expenses Sale price per unit Variable expenses per unit

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5) Fairfeld Company management has budgeted the following amounts for its next fiscal year Total fixed expenses Sale price per unit Variable expenses per unit $832,000 $40 If Fairfield Company spends an additional $30,000 on advertising, sales volume should increase by 2,500 units. What effect will this have on operating income? and by how much? (5points)

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