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A company makes a product that sells for $40 per unit Variable expenses are $20.00 per unit, and fixed expenses total $180,000 per year its
A company makes a product that sells for $40 per unit Variable expenses are $20.00 per unit, and fixed expenses total $180,000 per year its operating results for last year were as follows Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 960,000 480,000 480,000 180,000 $ 300,000 The company president wants to add new features to the product, which will increase the variable expenses by $2.50 per unit. She thinks that the new features combined with some increase in marketing spending, would Increase this year's sales by 25%. How much could the president increase this year's fixed marketing expense and still earn the same $300,000 net operating income as last year? Multiple Choice O $67,500 $81,000 $36.000 $45.000
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