Find out the company net operating income, Accounting Basics

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Find out the company net operating income

Problem:

Pool Company's variable expenses are 25% of sales. Pool is contemplating an advertising campaign that will cost $18,900. If sales increase by $78,900, the company's net operating income should increase by:

$40,275
$10,395
$19,725
$73,350

Note: Please show the work not just the answer.

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Accounting Basics: Find out the company net operating income

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Accounting Basics: Find out the company net operating income

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