How much will net income increase


Bumpkin Incorporated's variable costs are 40% of sales. The company is contemplating an advertising campaign that will cost $20,000. If sales are expected to increase $60,000, by how much will net income increase?

a. $24,000

b. $40,000

c. $16,000

d. $ 4,000

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Accounting Basics: How much will net income increase
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