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The marketing team at Phoenix Corporation is considering an advertising campaign that will increase annual sales revenue by $78,000 with no increase in variable costs. If Phoenix Corporation has a corporate tax rate of 28%, what will be the after-tax income generated by this campaign? a. $56,160 b. $62,400 c. $21,840 d. $78,000

The marketing team at Phoenix Corporation is considering an advertising campaign that will increase annual sales revenue by $78,000 with no increase in variable costs. If Phoenix Corporation has a corporate tax rate of 28%, what will be the after-tax income generated by this campaign? a. $56,160 b. $62,400 c. $21,840 d. $78,000

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 13E
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The marketing team at Phoenix Corporation is considering an advertising campaign that will increase annual sales revenue by $78,000 with no increase in variable costs. If Phoenix Corporation has a corporate tax rate of 28%, what will be the after-tax income generated by this campaign? a. $56,160 b. $62,400 c. $21,840 d. $78,000
Transcribed Image Text:The marketing team at Phoenix Corporation is considering an advertising campaign that will increase annual sales revenue by $78,000 with no increase in variable costs. If Phoenix Corporation has a corporate tax rate of 28%, what will be the after-tax income generated by this campaign? a. $56,160 b. $62,400 c. $21,840 d. $78,000
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