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The EV12857 company has provided the following cost, price, and sales data: Selling price Variable expenses Contribution margin Per Unit 240 54 186 $ The
The EV12857 company has provided the following cost, price, and sales data: Selling price Variable expenses Contribution margin Per Unit 240 54 186 $ The EV12857 company is currently selling 8,000 units per month. Fixed expenses are $880,000 per month. The marketing manager would like to cut the selling price by $28 and increase advertising spending by $60,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 20%. What would be the overall effect on the EV12857 company's monthly net operating income of this change? (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Multiple Choice 13,800 dollars -31,200 dollars -15,768 dollars -63,840 dollars
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