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Cobble Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit Sales
Cobble Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit Sales $160 100% 48 $112 30% 70% Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager ould like to cut the selling price by $13 and increase the advertising budget by $33,000 per month. The marketing anager predicts that these two changes would increase monthly sales by 900 units. What should be the overall effect on e company's monthly net operating income of this change? increase of $56,100 O increase of $99,300 O decrease of $8,900 decrease of $56,100
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