Kanek's contribution margin is 40%. The company is contemplating an advertising campaign that will cost $29,067. If sales are expected to increase $90,114, by how much will the company's net income increase?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 6P
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Net Income?

Kanek's contribution margin is 40%.
The company is contemplating an
advertising campaign that will cost
$29,067. If sales are expected to
increase $90,114, by how much will
the company's net income increase?
Transcribed Image Text:Kanek's contribution margin is 40%. The company is contemplating an advertising campaign that will cost $29,067. If sales are expected to increase $90,114, by how much will the company's net income increase?
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