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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Per Unit Sales Selling price $130 100% Variable
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Per Unit Sales Selling price $130 100% Variable expenses 52 40% Contribution margin $ 78 60% The company is currently selling 5,000 units per month. Fixed expenses are $216,000 per month. The marketing manager believes that a $7,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
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