Zeeb Corporation produces and sells a single product. Data concerning that product appear below: ...
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Accounting
| Zeeb Corporation produces and sells a single product. Data concerning that product appear below: |
| Per Unit | Percent of Sales | |||||||
| Selling price | $ | 600 | 100 | % | ||||
| Variable expenses | 240 | 40 | % | |||||
| Contribution margin | $ | 360 | 60 | % | ||||
| Fixed expenses are $430,000 per month. The company is currently selling 20,000 units per month. |
| Required: |
| The marketing manager believes that a $30,000 increase in the monthly advertising budget would result in a 310 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? (Input the amount as positive value.) |
| Change in net operating income | $ |
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