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The manager of the on-campus Mustang Coffee shop wants to spend an extra $2,000 each month for local advertising. She estimates the additional exposure will

The manager of the on-campus Mustang Coffee shop wants to spend an extra $2,000 each month for local advertising. She estimates the additional exposure will increase monthly sales revenue by $5,000. The CM ratio for the on-campus store is 65%. What is the predicted impact of the advertising on the shops profit/Net Operating Income? (Hint: Try using the CM ratio formula, or try using a CM format Income Statement that examines the changein each line of the Income Statement.)

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