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Per Unit Percent of Sales Selling price Variable expenses $130 100% 52 40% Contribution margin $ 78 60% The company is currently selling 6,500
Per Unit Percent of Sales Selling price Variable expenses $130 100% 52 40% Contribution margin $ 78 60% The company is currently selling 6,500 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7,200 Increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly operating profit of this change? Multiple Choice increase of $2,160 increase of $9,360 decrease of $7,200 decrease of $2,160
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