Zeeb Corporation produces and sells a single product. Data concerning that product appear below: Per
Zeeb Corporation produces and sells a single product. Data concerning that product appear below: Per | savvyessaywriters.org
Zeeb 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% |
Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month.
The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 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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