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Dubai Company has reported the following budget data: Sales..............................................................150,000 units Selling price....................................................$25 per unit Variable expense............................................$15 per unit Fixed manufacturing expenses...........................$800,000 Fixed selling and admin,

Dubai Company has reported the following budget data:

Sales..............................................................150,000 units

Selling price....................................................$25 per unit

Variable expense............................................$15 per unit

Fixed manufacturing expenses...........................$800,000

Fixed selling and admin, expenses....................$700,000

An advertising agency claims that an aggressive advertising campaign would enable the company to increase its sales by 20%.Whatis the maximum amount that the company can pay for advertising and obtain a net operating income of $200,000?Explain your answer.

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