Question
Ali Corporation produces and sells a single product. The company unit sold is 2500 units per month, Its Selling price per unit $100, variable expenses
Ali Corporation produces and sells a single product. The company unit sold is 2500 units per month, Its Selling price per unit $100, variable expenses per unit $45, fixed expenses $40000. The marketing manager would like to cut the selling price by $10 and increase the advertising budget by $5000 per month. The marketing manager predicts that these two changes would increase monthly unit sold to 3000 units.
Instruction :What should be the overall effect on the company's monthly net operating income of this change? Show your work byPreparing a Contribution Format Income Statement
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