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1. Wilson Company prepared the following preliminary... 1. Wilson Company prepared the following preliminary budget assuming no advertising expenditures: Selling price $10 per unit

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1. Wilson Company prepared the following preliminary... 1. Wilson Company prepared the following preliminary budget assuming no advertising expenditures: Selling price $10 per unit Unit sales 100,000 Variable expenses $700,000 Fixed expenses $200,000 Based on a market study, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 10% if $100,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted net operating income?

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