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Dybala Corporation's produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $160 100% Variable expenses
Dybala Corporation's produces and sells a single product. Data concerning that product appear below:
Per Unit | Percent of Sales | |
Selling price | $160 | 100% |
Variable expenses | 80 | 50% |
Contribution margin | $ 80 | 50% |
The company is currently selling 5,200 units per month. Fixed expenses are $359,000 per month. The marketing manager believes that a $6,200 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? |
Increase of $13,600
Decrease of $6,200
Increase of $7,400
Decrease of $7,400
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