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7. ABC Company's variable costs are 35% of sales. The company is contemplating an advertising campaign that will cost $25,000. If sales are expected to increase by $150,000, and fixed costs increase by $25,000 for the ad campaign, how much will the company's net income increase? A. $27,500 B. $125,000 C. $72,500 D. $150,000.

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7. ABC Company's variable costs are 35% of sales. The company is contemplating an advertising campaign that will cost $25,000. If sales are expected to increase by $150,000, and fixed costs increase by $25,000 for the ad campaign, how much will the company's net income increase? A. $27,500 B. $125,000 C. $72,500 D. $150,000

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7 ABC Companys variable costs are 35 of sales The compan.pdf

  • 1. 7. ABC Company's variable costs are 35% of sales. The company is contemplating an advertising campaign that will cost $25,000. If sales are expected to increase by $150,000, and fixed costs increase by $25,000 for the ad campaign, how much will the company's net income increase? A. $27,500 B. $125,000 C. $72,500 D. $150,000