Dunbar Manufacturing's Variable Costs Are 30% of Sales

question 124

Multiple Choice

Dunbar Manufacturing's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $55000. If sales are expected to increase $100000 by how much will the company's net income increase?

• A) $45000
• B) $70000
• C) $30000
• D) $15000

---

Definitions:

Excessive Informality

Refers to a workplace or organizational culture that may lack the necessary boundaries or structure, potentially leading to issues with discipline, respect, or productivity.

No Eye Contact

This refers to a communication behavior where individuals avoid looking directly into each other's eyes during interaction, often interpreted differently across cultures.

Power Distance

The extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.

Assertiveness

The quality of being self-assured and confident without being aggressive, allowing for clear and respectful communication of one's opinions and needs.