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The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $27,000. If sales increase by $84,000,
The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $27,000. If sales increase by $84,000, the company's net operating income will increase by: Multiple Choice $33,600 o $23,400 o $6,600 $66,600 Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 100 30 $ 70 Percent of Sales 100% 30% 70% Fixed expenses are $356,000 per month. The company is currently selling 5,100 units per month. Required: The marketing manager believes that a $13,000 increase in the monthly advertising budget would result in a 250 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income Bertie Corporation has two divisions: Retail Division and Wholesale Division. The following data are for the most recent operating period: Sales Variable expenses Traceable fixed expenses Total Retail Company Division $ 711,400 $438,800 $ 192,532 $105,300 $332,400 $253,900 Wholesale Division $ 272,600 $ 87,232 $ 78,500 The common fixed expenses of the company are $94,200. The Wholesale Division's break-even sales is closest to: Multiple Choice 1 0 $115,441 0 $283,135 0 $138,529 0 $488,824
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