Monthly net operating income of change

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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per UnitPercent of SalesSelling price$ 150, 100% percent of sales Variable expenses per unit 75, 50% percent of sales Contribution margin per unit $ 75, 50% percent of sales

zhe company is currently selling 5,600 units per month. Fixed expenses are $206,000 per month. The marketing manager believes that a $7,500 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?

Reference no: EM132969293

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