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Chris Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $130 100 % Variable

Chris Corporation produces and sells a single product. Data concerning that product appear below:

Per Unit

Percent of Sales

Selling price

$130

100

%

Variable expenses

$78

60%

Contribution margin

$52

40%

The company is currently selling 6,000 units per month. Fixed expenses are $263,000 per month. The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

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