Wilson Company Prepared the Following Preliminary Budget Assuming No Advertising

question 56

Multiple Choice

Wilson Company prepared the following preliminary budget assuming no advertising expenditures:

Based on a market study,the company estimated that it could increase the unit selling price by 15% and increase the unit sales volume by 10%,if $100,000 were spent on advertising.Assuming that these changes are incorporated in its budget,what should be the budgeted operating income?

• A) $175,000.
• B) $190,000.
• C) $205,000.
• D) $365,000.

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Definitions:

Sphincter

A ring-like muscle that controls the passage of substances through an opening in the body, such as the anus or esophagus.

Smooth Muscle

A type of muscle tissue which is not under conscious control, found in the walls of internal organs such as the stomach and intestines.

Humerus

The long bone in the upper arm or forelimb, extending from the shoulder to the elbow.

Cartilaginous Skeleton

A type of anatomical structure where the skeleton is made entirely of cartilage, as seen in sharks and rays.