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Biggers Company Expects the Following Results for the Next Accounting

Question 152

Multiple Choice

Biggers Company expects the following results for the next accounting period: Biggers Company expects the following results for the next accounting period: The sales manager believes sales could be increased by 400 units if advertising expenditures were increased by $10,000. If advertising expenditures are increased and sales increase by 400 units, the effect on operating income will be a(n) A) decrease of $4,000. B) increase of $22,000. C) increase of $4,000. D) increase of $30,000. E) cannot be determined from data given. The sales manager believes sales could be increased by 400 units if advertising expenditures were increased by $10,000. If advertising expenditures are increased and sales increase by 400 units, the effect on operating income will be a(n)


A) decrease of $4,000.
B) increase of $22,000.
C) increase of $4,000.
D) increase of $30,000.
E) cannot be determined from data given.

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