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The EV19147 company has provided the following cost, price, and sales data: 00 $ Per Unit 236 52 8 0120:14 Selling price Variable expenses Contribution
The EV19147 company has provided the following cost, price, and sales data: 00 $ Per Unit 236 52 8 0120:14 Selling price Variable expenses Contribution margin $ 184 The EV19147 company is currently selling 7,600 units per month. Fixed expenses are $884.000 per month The marketing manager would like to cut the selling price by $26 and increase advertising spending by $54,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 20%. What would be the overall effect on the EV19147 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) (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates DECREASE in net operating income) Multiple Choice -11,440 dollars -15.768 dollars -31,200 dollars 3,528 dollars
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