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Newman Corporation is a single-product manufacturing company with a standard budgeted selling price of $81.98 at a standard sales volume of 2,000 units per period.
Newman Corporation is a single-product manufacturing company with a standard budgeted selling price of $81.98 at a standard sales volume of 2,000 units per period. If Fixed Expenses stay the same at $34,555, how much would Net Operating Income increase given a $2.91 decrease in variable costs? Note: This question is asking for the difference (in dollars) between standard NOI and NOI after decreasing variable costs.
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