Question

frisk is contemplating an advertising campaign that will cost $20,000. frisk's variable expenses are 36% of sales. if sales increase by $80,000, the company's net operating income should increase by:

Answer 1

Variable costs for Pool Company account for 36% of sales. Pool is thinking about launching a $20,000 advertising campaign. The company's operating income should rise by $31,200 if sales rise by $80,000.

What is advertising?
To draw attention to a product as well as service, advertising practises and strategies are used. The goal of advertising is to draw attention to your good or service so that people will buy it. Although there are numerous other uses for advertising, it is typically used to promote a particular good that really is currently on sale. In contrast to public relations, advertising involves a message that is paid for and controlled by the advertiser. Since the message is not personalized—that is, not addressed to a specific person—it differs from personal selling.

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