Question: Please answer the following multiple choice cost accounting question. Crayion Manufacturing produces a single product that sells for $110. Variable costs per unit equal 530.
Please answer the following multiple choice cost accounting question.

Crayion Manufacturing produces a single product that sells for $110. Variable costs per unit equal 530. The company expects total xed costs to be $60,000 for the next month at the projected sales level of 1,400 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. One alternative is to increase advertsing expenses by $14,000. What is the effect on operating income with the increase of advertising expenses? 0 A. Operating income will decrease by $14,000. 0 B. Operating income will decrease by $33,000. 0 0. Operating income will increase by $14.00!}. C) D. Operating income will increase by $38.00!}
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