Based on a market study, Bates estimates that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if $100,000 was spent on advertising. Based on the analysis, what would Bates' operating income be from selling the candy if the decision is made to advertise?
Bates Corp. has the following information for its candy line:
A) $337,500
B) $417,500
C) $497,500
D) $717,500
Correct Answer:
Verified
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