Business, 17.03.2020 22:17 groundcontrol

Kuzio Corporation produces and sells a single product. Data concerning that product appear below:
Per Unit Percent of Sales
Selling price $ 150 100 %
Variable expenses 60 40 %
Contribution margin $ 90 60 %
The company is currently selling 5,200 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales.
Required:
a. What should be the overall effect on the company's monthly net operating income of this change?

Answers: 3

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