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Zeeb Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 220 100% Variable
Zeeb Corporation produces and sells a single product. Data concerning that product appear below: |
Per Unit | Percent of Sales | ||
Selling price | $ | 220 | 100% |
Variable expenses | 66 | 30% | |
Contribution margin | $ | 154 | 70% |
Fixed expenses are $362,000 per month. The company is currently selling 5,700 units per month. |
The marketing manager believes that a $19,000 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. |
Required: |
What should be the overall effect on the company's monthly net operating income of this change? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) |
Change in net operating income | $ |
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