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Unformatted text preview: B) $ 6,000,000 C) $ 7,200,000 D) $10,833,333 E) $ 8,300,000 Points Earned: 5.0/5.0 Correct Answer(s): D 11. Garfield Inc. is expanding throughout the Southeast United States, and it expects sales to increase by $1 million and operating costs (excluding depr and amort) by $700,000. Depreciation and amortization expenses will rise by $50,000 and interest expense by $150,000, while the company's tax rate will remain at 40%. If the company's forecast is correct, how much will net income change, as a result of the expansion? A) $180,000 increase B) $ 40,000 increase C) $100,000 increase D) $ 60,000 increase E) No change Points Earned: 0.0/5.0 Correct Answer(s): D...
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