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Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data: Sales (118,000 units at $5 per unit) 590,000 Variable expenses 472,000 Contribution

Bessler Brothers manufactures a carbon fiber head scratcher. Below is December 31st data:
Sales (118,000 units at $5 per unit) 590,000
Variable expenses 472,000
Contribution Margin 118,000
Fixed expenses 125,000
Net operating loss (7,000)
3. The older brother is convinced that a 15% increase in the selling price, combined with an increase
of $25,000 in advertising budget will increase units sold by 35%. Determine the Net Operating Income if these
if these changes are adopted. (Round to whole percent)

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