A company's manager estimates that in the upcoming year,increasing advertising costs by $25 000 will cause sales revenue to increase by $60 000.If the company's contribution margin ratio is 35%,what will be overall effect on net income?
A) Net income will increase by $12 250.
B) Net income will increase by $29 750.
C) Net income will increase by $35 000.
D) Net income will decrease by $4000.
Correct Answer:
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