Sibylikesh Sibylikesh

04-04-2017
Business

contestada

What happens to each company’s net income if sales increase by 30%?

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Nathanyel Nathanyel

04-04-2017

Increased Contribution Margin = $40,000 x 70%, or 28,000.
New ad campaign costs $22,000, so the net Income increase will be the difference, $6,000

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