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Biggers Company Expects the Following Results for the Next Accounting

question 111

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Biggers Company expects the following results for the next accounting period: Biggers Company expects the following results for the next accounting period:   The sales manager believes sales could be increased by 400 units if advertising expenditures were increased by $10,000. If advertising expenditures are increased and sales increase by 400 units, the effect on operating income will be a(n)  A)  decrease of $4,000. B)  increase of $22,000. C)  increase of $4,000. D)  increase of $30,000. E)  cannot be determined from data given. The sales manager believes sales could be increased by 400 units if advertising expenditures were increased by $10,000. If advertising expenditures are increased and sales increase by 400 units, the effect on operating income will be a(n)


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