Star Corporation management has budgeted the following amounts for its next fiscal year:
If Star Corporation spends an additional $20,000 on advertising,sales volume should increase by 3,000 units.What effect will this have on operating income?
A) Increase of $75,000
B) Increase of $55,000
C) Decrease of $55,000
D) Decrease of $75,000
Correct Answer:
Verified
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