Harvey's Variable Costs Are 30% of Sales

question 46

Multiple Choice

Harvey's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

• A) $18,000
• B) $28,000
• C) $12,000
• D) $6,000

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