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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 $130 78 $
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $130 78 $ 52 Percent of Sales 100% 60% 40% The company is currently selling 6,800 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $8,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $8,000 decrease of $2,400 increase of $10,400 increase of $2,400
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