Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase?

A. $6,000

B. $12,000

C. $28,000

D. $18,000

A. $6,000

B. $12,000

C. $28,000

D. $18,000

Do you have the same question? Follow this Question

First take 40,000 x 30% = 12,000

Then 40,000 - (12,000 + 22,000) = 6,000

Correct answer is A. $6,000

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