A company is currently selling 946 units per month at $33. Variable costs per unit are $4.
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Question:
A company is currently selling 946 units per month at $33. Variable costs per unit are $4. Fixed expenses are $1350 per month. The marketing manager believes that an $212 increase in the monthly advertising budget would result in a 145 unit increase in monthly sales.
What should be the overall effect in dollars on the company's monthly net operating income of this change?
Round ONLY your final answer to 2 decimal places.
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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