Samson Company has a contribution margin of 40%. The company is planning a promotional campaign that will cost $12,000. If sales are expected to increase by $45,000, by how much will the company's net income increase?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Samson Company has a contribution margin of 40%. The company is
planning a promotional campaign that will cost $12,000. If sales are
expected to increase by $45,000, by how much will the company's net
income increase?
Transcribed Image Text:Samson Company has a contribution margin of 40%. The company is planning a promotional campaign that will cost $12,000. If sales are expected to increase by $45,000, by how much will the company's net income increase?
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