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Calderon Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $220,000 per month. The company is currently selling
Calderon Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $220,000 per month. The company is currently selling 1, 900 units per month. Management is considering using a new component that would increase the unit variable cost by $38. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 300 units. Required: What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)
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