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

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Definitions:

Individual Freedom

The rights of an individual to have liberty and autonomy in their actions and decisions without undue government interference.

Administrative Law

A body of rules governing the application of statutes to activities regulated by administrative tribunals or boards.

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Government bodies responsible for supervising and enforcing laws and regulations within specific sectors to ensure public welfare, safety, and standards.

Business-Related Activity

Actions, conducts, or operations that are directly associated with the running and management of a business or commercial enterprise.