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Fox Company management has budgeted the following amounts for its next fiscal year. Total fixed expenses Sale price per unit Variable expenses per unit
Fox Company management has budgeted the following amounts for its next fiscal year. Total fixed expenses Sale price per unit Variable expenses per unit $200,000 $50 $30 To increase sales Fox is considering an advertising campaign that will add $50,000 to fixed costs Management expects sales to increase by 2,500 units What would be the impact on Fox's operating income? A. Increase of $125,000 OB. Increase by $50,000 OC. Decrease of $50,000 OD. No change
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