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Two companies are both considering a $150,000 investment in advertising that will increase sales volume for each company by 10%. Below is the current contribution

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Two companies are both considering a $150,000 investment in advertising that will increase sales volume for each company by 10%. Below is the current contribution margin income statement for each company. Techno Software Genius Advantage Current unit sales 300,000 300,000 volume Sales $ $3,000,000 $3,000,000 Variable costs $ 300,000 2,550,000 Contribution margin $ $2,700,000 $ 450,000 Fixed costs $ 2,620,000 370,000 Net operating income $ 80,000 $ 80,000 $ 1. Calculate the net operating income for Software Genius if it makes the $150,000 investment. When calculating variable and fixed total costs, you can assume that a 10% increase in sales volume is within the relevant range and treat the $150,000 advertising expense as an additional fixed cost. (please use this format for your answer: $9,000 and specify whether it is a profit or loss) (5 points) 2. Calculate the net operating income for Techno Advantage if it makes the $150,000 investment. When calculating variable and fixed total costs, you can assume that a 10% increase in sales volume is within the relevant range and treat the $150,000 advertising expense as an additional fixed cost. (please use this format for your answer: $9,000 and specify whether it is a profit or loss) (5 points)

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