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Larita Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit Percent of
Larita Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit Percent of Sales $190 100% FC= "243,000 38 20% plan to sell 2,000 $152 80% The marketing manager believes that a $28,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Show your work!
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