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How much will a company net operating income change

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Reference no: EM132787142

Problem 1: Direct labor cost is a part of:

Select one:

a. Conversion cost
b. Prime cost
c. Both Conversion and Prime costs
d. Indirect costs

Problem 2: How much will a company's net operating income change if it undertakes an advertising campaign given the following data:

Cost of advertising campaign: KD 25,000
Variable expense Ratio: 42%
Increase in sales: KD 60,000

Select one:

a. KD 200 increase
b. KD 9,800 increase
c. KD 25,200 increase
d. KD 15,000 increase

Reference no: EM132787142

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