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40 9. Data concerning William Corporation's single product appear below: Per Unit Percent of Sales Selling price $150 100% Variable expenses 90 60% Contribution margin

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40 9. Data concerning William Corporation's single product appear below: Per Unit Percent of Sales Selling price $150 100% Variable expenses 90 60% Contribution margin $ 60 The company is currently selling 5,000 units per month. Fixed expenses are $243,000 per month. The marketing manager believes that an $11,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A. Increase of $200 B. decrease of $200 C. Increase of $10,800 D. decrease of $11,000 10. Data concerning Thomas Corporation's single product appear below: Per Unit Percent of Sales Selling price $150 100". Variable expenses Contribution margin 5.90 60 40 60 Fixed expenses are $324,000 per month. The company is currently selling 5,000 units per month. Management is considering using a new component that would increaseme unit variable cost by $9. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change? A. decrease of $4,500 B. decrease of $40,500 C. increase of $40,500 D. increase of $4,500

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