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Use the following information to answer Questions 7 through 10. Cre8 Co. is a walk-in hair salon. Its selling prices, variable costs per unit, fixed

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Use the following information to answer Questions 7 through 10. Cre8 Co. is a walk-in hair salon. Its selling prices, variable costs per unit, fixed costs and sales mix have remained stable over the past fiscal year and are expected to remain stable for the next year. Cre8 Co. presented the following information for its last fiscal year: Revenue $800,000 Expenses $850,000 Net operating income ($50,000) It also reported the following information: . 80% of the expenses in the last fiscal year were variable. . Fixed expenses consist entirely of salon rent and stylist salaries.Question 8 4 Campus Advertising, Inc., has proposed an advertising campaign that would increase sales by $40,000. What is the most Cre8 Co. should be willing to pay for this advertising? 0 $32,000 0 $6,000 0 $40,000 0 $8,000

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