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The Saunders Company is trying to do some planning for the coming month. The following information was gathered from the last month. Sales revenue $300,000
The Saunders Company is trying to do some planning for the coming month. The following information was gathered from the last month.
Sales revenue | $300,000 |
Fixed manufacturing expenses | 110,000 |
Fixed marketing expenses | 20,000 |
Fixed administrative expenses | 18,500 |
Sales price | $20/unit |
Variable manufacturing costs | $7/unit |
Variable marketing costs | $3/unit |
If Saunders is able to generate a 20% increase in sales volume next month through a $24,000 advertising campaign, what is the expected operating income?
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