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A company makes a product that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. Its

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A company makes a product that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income $2,160,000 1,880,000 1,880,000 2 , $ 880,000 The company president wants to add new features to the product, which will increase the variable expenses by $190 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 $880,000 net operating income as last year

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