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UKJPQX588 Corp. has provided the following cost, price, and sales data: 12 Per Unit selling price $ 224 Variable 46 8 01:07:12 expenses Contribution 178
UKJPQX588 Corp. has provided the following cost, price, and sales data: 12 Per Unit selling price $ 224 Variable 46 8 01:07:12 expenses Contribution 178 margin (ID#87354) UKJPQX588 is currently selling 6,400 units per month. UKJPQX588's Fixed expenses are $896,000 per month. UKJPQX588's sales manager is planning to cut the selling price by $20 and increase advertising spending by $36,000 per month. UKJPQX588's manager above believes that these changes would increase monthly sales quantity by 20%. (Baruch College Exam) Q. What would be the overall effect on UKJPQX588's monthly net operating income of this change? (Note: A FOR SITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Multiple Choice Mc Graw Hill
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