T8 Problem Qu. 5235 (Algo) Naumann Corporation produces and sells a... Nuwnon Covpration produces and...
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T8 Problem Qu. 5235 (Algo) Naumann Corporation produces and sells a... Nuwnon Covpration produces and sells a single product. Data concerning that product appear below: Fued exwenses are $189000 per month. The company is currently selling 1,700 units per month. Beouirect: Managevment is considering using a new component that would increase the unit variable cost by $45. Since the new component woukd mpowe the companys product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overal effect on the company's monthly net operating income of this change if fixed expenses are unaffected? (Negative amovints should be indicated by a minus sign.)
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