What willbe overall effect on net income after tax if the


A company'smanager estimates that in the upcoming year, decreasing advertisingcosts by $30,000 will cause sales revenue to decrease by $80,000.If the company's contribution margin ratio is 40%, what willbe overall effect on net income after tax if thetax rate is 30%? Assume that any tax liability or tax benefit will be taken in the current year.

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Accounting Basics: What willbe overall effect on net income after tax if the
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