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Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $ 240 Selling price Variable expenses Contribution margin Percent
Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit $ 240 Selling price Variable expenses Contribution margin Percent of Sales 100% 25% 75% 60 $180 Fixed expenses are $364,000 per month. The company is currently selling 5,900 units per month. Required: The marketing manager believes that a $21,000 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
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