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Holly Inc. sells a single product for $ 4 0 . Variable costs include $ 2 2 for each unit plus a 1 0 %

Holly Inc. sells a single product for $40. Variable costs include $22 for each unit plus a 10% sales commission on each product sold. Fixed costs are $105,000 per month and they sell 21,000 units per month. She wants to spend $20,000 on an advertising campaign that she believes will increase sales by $50,000. What would be the effect on her net profits?
A. $2,500 increase
B. $8,750 decrease
C. $2,500 decrease
D. $30,000 increase
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