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Question:Required: 1-a. The marketing manager argues that a $9,000 increase in the monthly advertising budget would increase monthly sales by $20,000. Calculate the increase or
Question:Required:1-a.
The marketing manager argues that a $9,000 increase in the monthly advertising budget would increase monthly sales by $20,000. Calculate the increase or decrease in net operating income.
Per Unit Percent
of Sales
Selling price $125 100%
Variable expenses 80 64%
Contribution margin$ 45 36%
Fixed expenses are $85,000 per month and the company is selling 2,700 units per month.
References
Net operating income (increases or decreases) by...
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