What effect will this have on operating income


Fairfield Company management has budgeted the following amounts for its next fiscal year. Total fixed expenses $832,500, Sales price per unit $40, Variable expenses per unit $25. If fairfield Company spends an additional $30,000 on advertising, sales volume should increase by 2,500 units. what effect will this have on operating income?

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Accounting Basics: What effect will this have on operating income
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