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Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below: Per Unit Percent of Sales Selling price $150 100%
Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below:
Per Unit | Percent of Sales | |
Selling price | $150 | 100% |
Variable expenses | 75 | 50% |
Contribution margin | $ 75 | 50% |
The company is currently selling 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? |
Decrease of $7,200 | |
Increase of $15,750 | |
Decrease of $8,550 | |
Increase of $8,550 |
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