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Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below.] Marathon Company makes and

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Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below.] Marathon Company makes and sells a single product. The current selling price is $20 per unit. Variable expenses are $12 per unit, and fixed expenses total $61.800 per month. (Uniess otherwise stated, consider each requirement separately.) f. 1. Calculate the monthly operating income (or loss) that would result from a \$1 per unit price increase and a $6.000 per mont increase in advertising expenses, both relative to the originat data. Assume a sales volume of 7.350 units per month 2. Is the increase in advertising expense justilied by the price increase? Complete this question by entering your answers in the tabs below. Calculate then monthily operating incoene (or loss) that would result from a $1 per unit price increase and a $6,000 per month increatin in advertising expenses, both recative to the original data. Assume a sales volume of , . Is and ofs per month. Note bo not roend int rrimediate calculatbers

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