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#9. A company sells a product and the following info is provided: Selling price: $60/unit Contribution Margin ratio: 50% Fixed expenses: $18,000/year Assume that the

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#9. A company sells a product and the following info is provided: Selling price: $60/unit Contribution Margin ratio: 50% Fixed expenses: $18,000/year Assume that the company sold 4,000 units last year. The sales manager is convinced that a 10% reduction in the selling price, combined with a $40.000 increase in advertising expenditures, wound increase annual unit sales by 50%. If these changes were made by how much would net operating income increase or decrease? a. $17,700 increase b. $16,000 decrease c. $15,500 increase d. $10,000 decrease e. None of the above

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