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8.34 pts Burns Factory A produces and sells a single product. Data concerning that product appear below. Per Unit Percent of Sales Selling price Variable
8.34 pts Burns Factory A produces and sells a single product. Data concerning that product appear below. Per Unit Percent of Sales Selling price Variable expenses Contribution margin $ 140 100% 60 % 84 $ 56 40 % The company is currently selling 6600 units per month. Fixed expenses are $188,000 per month. The marketing manager believes that a $7000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? decrease of $7000 increase of $2520 decrease of $2520 increase of $9520
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