Question: Jack Co. can increase sales by 30% by spending $2,000 on store improvements. If the contribution margin for Jack Co. is currently $15,000, the impact

Jack Co. can increase sales by 30% by spending $2,000 on store improvements. If the contribution margin for Jack Co. is currently $15,000, the impact of this decision on net income would be:

		a. an increase of $2,500.
		b. an increase of $4,500.
		c. net income would not change.
		d. a decrease of $4,500.

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