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Happy Cat Toy Company has estimated the following amounts for its next fiscal year Total fixed expenses Sale price per unit Variable expenses per unit
Happy Cat Toy Company has estimated the following amounts for its next fiscal year Total fixed expenses Sale price per unit Variable expenses per unit $832,500 50) 28 If the company spends an additional $32,000 on advertising, sales volume would increase by 3,000 units. What effect will this decision have on the operating income? A. Operating income will increase by $64,000. ( B. Operating income will increase by $96,000. C. Operating income will decrease by $84,000. D. Operating income will increase by $180,000
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