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Prince Paper has budgeted the following amounts for its next fiscal year Total fixed expenses $600,000 Selling price per unit Variable expenses per unit $70

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Prince Paper has budgeted the following amounts for its next fiscal year Total fixed expenses $600,000 Selling price per unit Variable expenses per unit $70 $50 If Price Paper spends an additional $12,900 on advertising, sales volume should increase by 2,000 units. What effect will this have on operating income? A. Increase of $27,100 B. Decrease of $40,000 C. Increase of $40,000 D. Decrease of $27,100 O O

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