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Larita Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price Variable expenses Contribution
Larita Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price Variable expenses Contribution margin $190 38 $152 100% 20% FC="243,000 plan to sell 2,000 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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