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Ignoring your answer to part (a), assume that fixed manufacturing overhead was $100,400 and the fixed selling and administrative expenses were $81,800. The marketing vice president feels that if the company increased its advertising, sales could be increased by 20%. What is the maximum increased advertising cost the company can incur and still report the same income as before the advertising expenditure?

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Accounting Basics, Accounting

Category:- Accounting Basics
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