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e At a level ofsso in sales for a segment of the osales and trad by 520,000, the ratio of variable expenses to sales will

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e At a level ofsso in sales for a segment of the osales and trad by 520,000, the ratio of variable expenses to sales will expenses to sales will decrease, decrease stay the same, stay the same decrease, stay the same stay the same, increase increase, decrease Company. e expenses for the Wes down and the ratio of traceable fixed A) B) 28) in the come will increase For a particular company variable costs are 6596 of sales and the total contribution breakeven point is 5227.500 sales volume increases by S10.000, net operating by A. $3,500 B. $6,500 C. It depends on whether the company is above or below the breakeven point. D. It cannot be determined from the information given E. None of the above 29) Cream Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Selling Price S130 Variable Cost $ 78 Contribution Margin $ 52 The company is currently selling 6,000 units per month. Fixed expenses are $263,000 per month. The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A) Increase of $2,280 B) Increase of $7,280 C) Decrease of $5,000 D) Decrease of $2,280

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