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Birney Company is planning its advertising campaign for 2012 and has prepared the following budget data based on a zero advertising expenditure:
An advertising agency claims that an aggressive advertising campaign would enable Birney to increase its unit sales by 20%. What is the maximum amount that Birney can pay for advertising and obtain an operating profit of $200,000?
A. $550,000 B. $200,000 C. $300,000 D. $100,000 |