Pool Company’s variable costs are 36% of sales revenues. Pool is


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Pool Company’s variable costs are 36% of sales revenues. Pool is contemplating an advertising campaign that will cost $20,000 based on a fixed fee. If sales are expected to increase by $80,000 as a result of the new advertising campaign, the company’s net income will increase by? A. $28,800 B. $64,000 C. $8,800 D. $31,200 E. None of the above

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