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Saved Help Save & E Su Thornbrough Corporation produces and sells a single product with the following characteristics: Selling price Variable expenses Contribution margin Per
Saved Help Save & E Su Thornbrough Corporation produces and sells a single product with the following characteristics: Selling price Variable expenses Contribution margin Per Unit $220 44 $176 Percent of sales 100% 20% sex The company is currently selling 7000 units per month Fixed expenses are $90.000 per month The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $53,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1000 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $105.000 Increase of 50.000 increase of $105.000 OSTAM
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