“39. The Clyde Company’s variable costs are 35% of sales. Clyde Company is contemplating an advertising campaign that will cost $25,000. If sales are expected to increase $75,000, the company’s net income will increase by: a. $26,250 b. $23,750 c. $1,250 d. $65,000”,”2Sales 100% – Variable expenses 35%= Contribution Margin 65% Contribution margin is 65%Profit from new sales (75,000 x .65) = $48,750- Cost of Advertising (25,000) Increase in net income 23

“39. The Clyde Company’s variable costs are 35% of sales. Clyde Company is contemplating an advertising campaign that will cost $25,000. If sales are expected to increase $75,000, the company’s net income will increase by: a. $26,250 b. $23,750 c. $1,250 d. $65,000”,”2Sales 100% – Variable expenses 35%= Contribution Margin 65% Contribution margin is 65%Profit from new sales (75,000 x .65) = $48,750- Cost of Advertising (25,000) Increase in net income 23

750″