Net operating income evaluation

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Reference no: EM13148367

Riven Corporation has a single product whose selling price is $20. At an expected sales level of $2,380,000, the company's variable expenses are $833,000 and its fixed expenses are $297,000. The marketing manager has recommended that the selling price be increased by 25%, with an expected decrease of only 8% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?

Reference no: EM13148367

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