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A company sold 60,000 units, which is 20,000 units above its break-even sales, of its product and earned $40,000 in net operating income in the
A company sold 60,000 units, which is 20,000 units above its break-even sales, of its product and earned $40,000 in net operating income in the current month. The firm's marketing manager suggests that, if the company runs a new TV commercial at a cost of $10,000 per month, the sales volume could reach 70000 units next month without the need to lower the sales price. If marketing manager's suggestion is taken, what will be the net operating income for the next month?
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