The Clyde Corporation’s variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $29,000.

The Clyde Corporation’s variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $29,000. If sales increase by $79,000, the company’s net operating income will increase by:

$31,600 $18,400 $2,600 $64,800