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The Isbit Company has developed an income statement using a contribution margin format (refer to .pdf in Moodle). The projected income statement was based
The Isbit Company has developed an income statement using a contribution margin format (refer to .pdf in Moodle). The projected income statement was based upon sales of 10,000 units. Isbit has capacity to produce 15,000 units per year. The sales manager believes the company could increase sales by 15% if advertising expenditures are increased by $15,000. What would the expected impact to income be?
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