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5. Wilson Company prepared the following preliminary budget assuming no advertising expenditures: Sales 1265,000 Selling price $10 per unit * 151. 11.5 ve -> Coc,000
5. Wilson Company prepared the following preliminary budget assuming no advertising expenditures: Sales 1265,000 Selling price $10 per unit * 151. 11.5 ve -> Coc,000 Unit sales ........................ 100.000 107 0 00 cm SOLD Variable expenses............ $600.000 fe . 400,000 Fixed expenses.. $300,000 -100,000 - 400.000 2.605,000 Based on a market study, the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if $100,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted net operating income? A) $175,000 B) $365,000 C) $205,000 D) $190,000
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