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Next year. CPC Inc. expects to sell 50,000 units of its only product and has prepared the following budgeted income statement: Sales Variable expenses Contribution
Next year. CPC Inc. expects to sell 50,000 units of its only product and has prepared the following budgeted income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income $1,250,000 750,000 500,000 300,000 $200,000 10. The marketing manager suggests that a $25,000 increase in advertising will increase sales by $100,000. If she is correct, net operating income would be: a. $275,000. b. $191,000. 1,350,000 - c. $215,000 750,00 d. $235,000 600,00 325,000
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