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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 140 100% Variable
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 140 100% Variable expenses 70 50% Contribution margin $ 70 50% The company is currently selling 5,400 units per month. Fixed expenses are $197,000 per month. The marketing manager believes that a $7,400 increase in the monthly advertising budget would result in a 120 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 $1,000 increase of $8,400 decrease of $7,400 decrease of $1,000
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