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

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Accounting

Shelhorse Corporation produces and sells a single product. Data concerning that product appear below:
Fixed expenses are $351,000 per month. The company is currently selling 4,600 units per month.
Required:
The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 200 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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