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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 140 70

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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 140 70 $ 70 Percent of Sales 100% 50% 50% The company is currently selling 5,600 units per month. Fixed expenses are $ 204,000 per month. The marketing manager believes that a $7,000 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? Multiple Choice decrease of $700 increase of $700 decrease of $7,000 increase of $7700

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