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Wilson Company prepared the following preliminary budget assuming no advertising expenditures: Selling price Unit sales Variable expenses Fixed expenses $10 per unit 100,000 $600,000

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Wilson Company prepared the following preliminary budget assuming no advertising expenditures: Selling price Unit sales Variable expenses Fixed expenses $10 per unit 100,000 $600,000 $300,000 Based on a market study, the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10%, if $100,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted operating income? $205,000 $365,000 $175,000 $190,000

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