Question
The BZ-97307 company charges a price of $238 per unit of its product. The company's variable cost per unit is $53. The BZ-97307 company
The BZ-97307 company charges a price of $238 per unit of its product. The company's variable cost per unit is $53. The BZ-97307 company on average sells 7,800 units per month. Fixed expenses are $882,000 per month. The company considers cutting the selling price by $27 and increasing its advertising budget by $57,000 per month. The company predicts monthly sales quantity to increase by 22%. What is the overall effect on the BZ-97307 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 3,528 dollars 13,800 dollars -31,200 dollars -15,768 dollars
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