Chapter 12, Problem 12.14E

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Derrington Corporation's inventory at the end of

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Dunbar Manufacturing's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $55,000. If sales are expected to increase by $100,000, by how much will the company's net income increase? a. $30,000 b. $15,000 c. $45,000 d. $70,000

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