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Jumanji Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 40% Per Unit $ 150 60 Selling
Jumanji Corporation produces and sells a single product. Data concerning that product appear below: Percent of Sales 100% 40% Per Unit $ 150 60 Selling price Variable expenses Contribution margin $ 90 60% The company is currently selling 6,200 units per month. Fixed expenses are $185,000 per month. The marketing manager believes that a $7,900 increase in the monthly advertising budget would result in a 200 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 $18,000 decrease of $10,100 decrease of $7,900 increase of $10,100
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