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Prince Paper has budgeted the following amounts for its next fiscal year: Total fixed expenses Selling price per unit Variable expenses per unit $300,000 $65
Prince Paper has budgeted the following amounts for its next fiscal year: Total fixed expenses Selling price per unit Variable expenses per unit $300,000 $65 $30 If Price Paper spends an additional $12,400 on advertising, sales volume should increase by 2,000 units. What effect will this have on operating income? O A. Increase of $57,600 O B. Decrease of $57,600 O c. Decrease of $70,000 OD. Increase of $70,000
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