Prince Paper has budgeted the following amounts for its next fiscal year:
If Price Paper spends an additional $12,500 on advertising, sales volume should increase by 2,300 units. What effect will this have on operating income?
A) Increase of $102,500
B) Increase of $115,000
C) Decrease of $115,000
D) Decrease of $102,500
Correct Answer:
Verified
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