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Data concerning Cincinnati Supply Corp.'s, a supplier to Kraft Foods, single product appear below: Per unit Selling price $150 Variable expense 90 Contribution Margin $

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Data concerning Cincinnati Supply Corp.'s, a supplier to Kraft Foods, single product appear below: Per unit Selling price $150 Variable expense 90 Contribution Margin $ 60 Fixed expenses are $106,000 per month. The company is currently selling 2,000 units per month. The marketing manager would like to cut the selling price by $15 and increase the advertising budget by $5,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? increase of $103,000 increase of $1,000 decrease of $31,000 increase of $31,000

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