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7. A company believes that if it spends $75,000 on an advertising campaign for one of its segments, there will be a 50% increment in
7. A company believes that if it spends $75,000 on an advertising campaign for one of its segments, there will be a 50% 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. 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. $35,000 c. $115,000 b. $45,000 d. \$125,000 e. None of the above. The answer is
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