Answer:
The correct answer is B.
Explanation:
Giving the following information:
The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $27,000 and will increase sales by $88,000.
Effect on income= Increase on income - variable costs - fixed costs
Effect on income= 88,000 - (0.35*88,000) - 27,000= $30,200
