Question: The sales manager is convinced a 1 0 % reduction in the selling price, combined with a $ 3 0 , 0 0 0 increase

The sales manager is convinced a 10% reduction in the selling price, combined with a $30,000 increase in advertising, would increase this year's unit sales by 25%.
If the sales manager is right, what would be this year's net operating income if his ideas are implemented?
If the sales manager's ideas are implemented, how much will net operating income increase or decrease over last year?

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