Business, 12.03.2021 15:40 chaanah

Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales
Selling price $ 140 100 %
Variable expenses 84 60 %
Contribution margin $ 56 40 %
The company is currently selling 6,700 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $7,000 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?
A) decrease of $2,520
B) increase of $2,520
C) decrease of $7,000
D) increase of $9,520

Answers: 2

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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: P...

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