Question
The Kamper company has provided the following cost, price, and sales data: Per Unit Selling price $ 242 Variable expenses 55 Contribution margin $ 187
The Kamper company has provided the following cost, price, and sales data:
Per Unit Selling price $ 242
Variable expenses 55
Contribution margin $ 187
The Kamper company is currently selling 8,200 units per month.
Fixed expenses are $878,000 per month.
The marketing manager would like to cut the selling price by $29 and increase advertising spending by $63,000 per month.
The marketing manager predicts that these changes would increase monthly sales quantity by 22%.
What would be the overall effect on the Kamper company's monthly net operating income of this change?
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