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The EV64908 company has provided the following cost, price, and sales data: Per Unit $ Selling price Variable expenses Contribution margin 234 51 183 The
The EV64908 company has provided the following cost, price, and sales data: Per Unit $ Selling price Variable expenses Contribution margin 234 51 183 The EV64908 company is currently selling 7.400 units per month. Fixed expenses are $886,000 per month The marketing manager would like to cut the selling price by $25 and increase advertising spending by $51,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 18%. What would be the overall effect on the EV64908 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 O -31,200 dollars 3,528 dollars -25,544 dollars -11,440 dollars
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