Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that

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Acme Company has variable costs equal to 30% of sales. The company is considering a proposal that will increase sales by $10,000 and total fixed costs by $7,000. By what amount will net income increase?

a) $0

b) $3,000

c) $7,000

d) $4,000

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Posted Date: Jan 06, 2021 01:13 AM

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Introduction to Corporate Finance What Companies Do

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