Monthly advertising budget

Assignment Help Accounting Basics

Reference no: EM13155060

Selling price 80.00/unit % of sales 100%

variable expenses 43.20 54%

contribution margin 36.80 46%

Fixed expenses 75,200/month and the company is selling 3,000 units per months.

Calculate the increase or decrease in net operating income if an 8,300 increase in the monthly advertising budget would increase monthly sales by 14,300.

Reference no: EM13155060

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