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A company decided to institute an advertising campaign that would cost $75,000. Variable costs will remain at $15 per unit. The company is currently selling
A company decided to institute an advertising campaign that would cost $75,000. Variable costs will remain at $15 per unit. The company is currently selling 100,000 units of its product at $25 per unit. The marketing department is estimating that there will be a 10 percent increase in sales volume. With all else remaining the same, what will be the result of this decision?
Group of answer choices
An increase in sales of $25,000
A decrease in operating income of $75,000
none of the above
An increase in operating income of $25,000
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