Walker has current sales of 600000 and variable costs of
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Walker has current sales of $600,000 and variable costs of $360,000. fixed costs are equal to $200,000. The marketing mgr is considering a new campaign which will increase fixed costs by $10,000. She anticipates that the campaign will cause a sales increase by 5 percent.
Will the impact on walkers income be an increase by $2000 or a decrease by $2000?

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