Disney’s variable costs are 30% of sales. - 2725

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Disney’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.  $28,000

B.  $12,000

C.  $18,000

D.  $6,000

Solution Description

 Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22