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Sales (12,900 units $20 per unit) $ 258,000 Variable expenses 129,000 Contribution margin 129,000 Fixed expenses 144,000 Net operating loss $ (15,000) T he president

Sales (12,900 units $20 per unit) $ 258,000
Variable expenses 129,000
Contribution margin 129,000
Fixed expenses 144,000
Net operating loss $ (15,000)
T

he president believes that a $6,700 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $85,000 increase in monthly sales. If the president is right, what will be the effect on the companys monthly net operating income or loss? (Use the incremental approach in preparing your answer.)

Please suppy an explination. I have worked this mutilple times and I get 20,800.

Thank you

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