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Tolton, Inc. is just shy of hitting its operating income target. The manager, K . T . Tolton, decides to purchase inferior materials right before

Tolton, Inc. is just shy of hitting its operating income target. The manager, K.T. Tolton, decides to purchase inferior materials right before year end. The standard price for the materials is $13.00 per pound. K.T. buys 5,000 pounds of inferior product at $11.65 per pound. What is the effect on net income for the year? Please sign an increase as a positive number (e.g.100) and a decrease as a negative number (e.g.-100).

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