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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 $ 140 84
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 140 84 $ 56 Percent of Sales 100% 60% 40 % The company is currently selling 4,800 units per month. Fixed expenses are $209,000 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?
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