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A companys manager estimates that in the upcoming year decreasing advertising costs

A company’s manager estimates that in the upcoming year, decreasing advertising costs by $30,000 will cause sales revenue to decrease by $80,000. If the company’s contribution margin ratio is 40%, what will be overall effect on net income after tax if the tax rate is 30%?

Assume that any tax liability or tax benefit will be taken in the current year.

Apr 20 2018 View more View Less

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