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Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month. The marketing manager believes that a $16,000 increase in the
Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month. The marketing manager believes that a $16,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. Required: What should be the overall effect on the company's monthly net operating income of this change? (Negative amount should be indicated by a minus sign.)
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