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Amazong Manufacturing produces and sells one product. Information concerning that product appears below. Selling price Variable expenses Contribution margin Per Unit Percent of Sales

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Amazong Manufacturing produces and sells one product. Information concerning that product appears below. Selling price Variable expenses Contribution margin Per Unit Percent of Sales $180 100% 36 $144 20% 80% Amazon's fixed expenses are $100,000 per month. Amazon is currently selling 1,500 units per month. Required: Amazon anagement is considering using a new component that would increase the unit variable cost of its product by $50. Since the new component would improve the product, the marketing manager predicts that monthly sales would increase by 700 units. What would be the overall effect on the company's monthly operating income of this change assuming no other investments are required? (Negative amount should be indicated by a minus sign.) Change in net operating income A

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