Question
The EV70606 company has provided the following cost, price, and sales data: Per Unit Selling price $ 230 Variable expenses 49 Contribution margin $ 181
The EV70606 company has provided the following cost, price, and sales data: Per Unit Selling price $ 230 Variable expenses 49 Contribution margin $ 181 The EV70606 company is currently selling 7,000 units per month. Fixed expenses are $890,000 per month. The marketing manager would like to cut the selling price by $23 and increase advertising spending by $45,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 18%. What would be the overall effect on the EV70606 company's monthly net operating income of this change?
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