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A sales manager has projected that an increase in the monthly advertising budget to $10,000 will increase monthly sales from 10,000 units to 12,000 units.

A sales manager has projected that an increase in the monthly advertising budget to

$10,000 will increase monthly sales from 10,000 units to 12,000 units. Each unit sells for

$50 with total variable costs per unit of $40. Monthly fixed expenses, including the

current advertising costs of $5,000, total $20,000. Given the above data, what will be the

expected impact on net income?

A)

An increase of $20,000.

B)

An increase of $5,000.

C)

An increase of $10,000.

D)

An increase of $15,000.

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