Naumann Corporation produces and sells a single product. Data concerning that product appear below. Fixed...
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Accounting
Naumann Corporation produces and sells a single product. Data concerning that product appear below. Fixed expenses are $120,000 per month. The company is currently seling 1,300 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $49. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What shouk be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? (Negative amounts should be indicated by a minus sign.)
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