Kuzio Corporation produces and sells a single product. Data concerning that product appear below:
Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 75 50 % Contribution margin $ 75 50 %
The company is currently selling 5,600 units per month. Fixed expenses are $187,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales.
What should be the overall effect on the company's monthly net operating income of this change?
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Kuzio Corporation produces and sells a single product. Data concerning that product appear below:
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