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Sales $ 1 , 1 2 0 , 0 0 0 Variable expenses 5 6 0 , 0 0 0 Contribution margin 5 6 0
Sales $
Variable expenses
Contribution margin
Fixed expenses
Net operating income $
The president does not want to change the selling price. Instead, he wants to increase the sales commission by $ per unit. He thinks this move, combined with some increase in advertising, would increase this year's unit sales by How much could the president increase this year's advertising expense and still earn the same $ net operating income as last year?
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