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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: 00 Percent of Sales 100% 50% Per Unit $140 70 Selling
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: 00 Percent of Sales 100% 50% Per Unit $140 70 Selling price Variable expenses Contribution margin $ 70 50% The company is currently selling 5,300 units per month. Fixed expenses are $203,000 per month. The marketing manager believes that a $7,400 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 $4,500 O increase of $11,900 O decrease of $7,400 O O decrease of $4,500
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