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6. Watson Company reported the following for February: 500 Units of Product Sold Revenues $45,000 Variable costs $20,400 Contribution margin $24,600 Fixed costs $10,000 Operating

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6. Watson Company reported the following for February: 500 Units of Product Sold Revenues $45,000 Variable costs $20,400 Contribution margin $24,600 Fixed costs $10,000 Operating income $14,600 Watson's sales manager believes that a $3,000 increase in advertising next month will result in a 10% increase in unit sales. Compute the operating income if Watson Company increases spending on advertising. a. $14,060 b. $17,060 c. $16,060 d. $16.100

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