Kuzio Corporation produces and sells a single product. Data concerning that product appear below:
Per Unit Percent of Sales
Selling price $220 100%
Variable expenses 88 40%
Contribution margin $132 60%
The company is currently selling 6,500 units per month. Fixed expenses are $183,000 per month. The marketing manager believes that an $6,400 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
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Home » Business » Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $220 100% Variable expenses 88 40% Contribution margin $132 60% The company is currently selling 6,500 units