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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 $ 150 75
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 150 75 $ 75 Percent of Sales 100% 50% 50% The company is currently selling 6,500 units per month. Fixed expenses are $206,000 per month The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 100 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 $1,200 ) Multiple Choice increase of $1,200 increase of $7,500 decrease of $6,300 decrease of $1,200
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