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Naumann Corporation produces and sells a single product Data conceming that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 200 40

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Naumann Corporation produces and sells a single product Data conceming that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 200 40 $ 160 Percent of Sales 1891 20% BOX Fixed expenses are $120,000 per month. The company is currently selling 1.300 units per month Required: Management is considering using a new component that would increase the unit variable cost by $49. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units What should be the overall effect on the company's monthly net operating income of this change of fixed expenses are unaffected? (Negative amount should be indicated by a minus sign.) Change in net operating income

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