What will be increase in next month net operating income

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Reference no: EM132080916

Question: Topeka Company's income statement for the current month shows that the company sold 500,000 units of its product and earned net operating income of $600,000. Management is very pleased with the result and believes a the company's financial position strong because sales have go down by 50% from the current level before further believes that company new TV commercial at a cost of $80,000 per month, sales volume next month could grow by 35% from the current sales level without the need to lower the sales price. If this action is taken, what will be the increase or decrease in the next month's net operating income from the current month?

Reference no: EM132080916

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