Solved: How much will the companys net income increase, Accounting Basics

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How much will the companys net income increase

Question:

Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

A. $12,000
B. $18,000
C. $6,000
D. $28,000

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Accounting Basics: How much will the companys net income increase

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