Question
The BZ-89886 company charges a price of $232 per unit of its product. The company's variable cost per unit is $50. The BZ-89886 company on
The BZ-89886 company charges a price of $232 per unit of its product. The company's variable cost per unit is $50. The BZ-89886 company on average sells 7,200 units per month. Fixed expenses are $888,000 per month.
The company considers cutting the selling price by $24 and increasing its advertising budget by $48,000 per month. The company predicts monthly sales quantity to increase by 20%. What is the overall effect on the BZ-89886 company's monthly net operating income of these changes?
(Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income)
Multiple Choice
6,720 dollars
-25,544 dollars
-11,440 dollars
3,528 dollars
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