Pittsboro Corporation produces and sells a single product. Data for that product are:Sales price per unit $500Variable cost per unit $320Fixed expenses for the month $1,000,000Currently selling 4,000 unitsManagement is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented?
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