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QUESTION
The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $29,000.
The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $29,000. If sales increase by $79,000, the company's net operating income will increase by:
$31,600 $18,400 $2,600 $64,800