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Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit
Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit Sales 100% 40% 601 $ 150 60 $ 90 Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month. Required: The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income
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