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The EV85622 company has provided the following cost, price, and sales data: Per Unit Selling price $ 240 Variable expenses 54 Contribution margin $ 186

The EV85622 company has provided the following cost, price, and sales data:

Per Unit
Selling price $ 240
Variable expenses 54
Contribution margin $ 186

The EV85622 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 EV85622 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)

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