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Laraby sells one product with a price of $98 per unit and variable expenses per unit is $43 per unit. Fixed expenses are $46,000 per
Laraby sells one product with a price of $98 per unit and variable expenses per unit is $43 per unit. Fixed expenses are $46,000 per month. The company is currently selling 1,500 units per month. The marketing manager would like to cut the selling price by $5 and increase the advertising budget by $2,200 per month. The marketing manager predicts that these two changes would increase monthly sales by 150 units. What should be the overall effect on the company's monthly net operating income of this change? Per Unit Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income Per Unit Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income Overall Effect on Net Operating Income
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