The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $28,000. If sales increase by $85,000, the company's net operating income will increase by:
Increase in sales $85,000
Less variable expenses($85,000 * 35%) 29,750
Contribution margin $55,250
Less additional advertising campaign expense 28,000
increase in operating income $27,250
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