Montclair Company earns an average contribution margin ratio of 40% on its sales. The local store manager

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Montclair Company earns an average contribution margin ratio of 40% on its sales. The local store manager estimates that he can increase monthly sales volume by $45,000 by spending an additional $7,000 per month for direct mail advertising. Compute the monthly increase in operating income if the manager's estimate about the increased sales volume is accurate.

Multiple Choice

$23,000
$18,000
$16,000
$11,000

Posted Date: Jun 25, 2024 10:45 PM

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Montclair Company earns an average contribution margin ratio of 40% on its sales. The local store manager

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