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Megan's Manufacturing produces and sells a single product. Data concerning the product appears below: selling price per unit $220 variable expenses per unit $132 Fixed

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Megan's Manufacturing produces and sells a single product. Data concerning the product appears below: selling price per unit $220 variable expenses per unit $132 Fixed expenses are $300,000 per month. The company is currently selling 4,000 units each month. The marketing manager would like to reduce to selling price by $13 and increase the advertising budget by $21,000 per month. The marketing manager predicts that these two changes will increase monthly sales by 900 units. Should Megan's Manufacturing implement these changes? Yes, because net income will increase by $165,300 Yes, because net income will increase by $46,500 No, because net income would decrease by $46,500 No, because net income would decrease by $5,500

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