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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit $ 140 Sales 100% 84 $ 56 60% 40% The company is currently selling 6,700 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $7,000 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? Multiple Choice increase of $2,520 increase of $9,520 decrease of $7,000 decrease of $2,520
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