Hammer Company Expects the Following Results for the Next Accounting

question 113

Multiple Choice

Hammer Company expects the following results for the next accounting period: $\begin{array}{lr}\text { Sales } & \$ 240,000 \\\text { Variable costs } & \$ 135,000 \\\text { Fixed costs } & \$ 40,000 \\\text { Expected production and sales in units } & 3,000\end{array}$ The sales manager believes sales could be increased by 400 units if advertising expenditures are increased by $10,000.Suppose advertising expenditures are increased and sales increase by 400 units.What will be the effect on operating income?

• A) a decrease of $4,000
• B) an increase of $22,000
• C) an increase of $4,000
• D) an increase of $30,000

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Definitions:

Environmental Terrorism

Acts intended to cause damage to the natural environment or to compromise public health and safety for the sake of political or social objectives.

Water Pollution

contamination of water bodies such as lakes, rivers, oceans, and groundwater, making it harmful to organisms and the environment.

Organisms

Any living individual entities that can react to stimuli, reproduce, grow, and maintain homeostasis.

Waste Water Management

The process of treating and managing wastewater to minimize its adverse effects on human health and the environment.