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Houpe Corporation produces and sells a single product. Data concerning that product appear below: Percent of selling price Variable expenses Contribution margin Per Unit $140
Houpe Corporation produces and sells a single product. Data concerning that product appear below: Percent of selling price Variable expenses Contribution margin Per Unit $140 42 $ 98 Sales 1008 30% 70% Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager believes that a $14,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $700 increase of $14,700 decrease of $14,000 decrease of $700
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