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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 | 60 | 40% |
Contribution margin | $ 90 | 60% |
The company is currently selling 6,100 units per month. Fixed expenses are $493,100 per month. The marketing manager believes that a $6,900 increase in the monthly advertising budget would result in a 110 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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