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Data Concerning Cavaluzzi Corporation's Single Product Appear Below

Question 107

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Data concerning Cavaluzzi Corporation's single product appear below:
Data concerning Cavaluzzi Corporation's single product appear below: Fixed expenses are $440,000 per month.The company is currently selling 8,000 units per month. Required: The marketing manager believes that an $8,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change? Show your work! Fixed expenses are $440,000 per month.The company is currently selling 8,000 units per month.
Required:
The marketing manager believes that an $8,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change? Show your work!

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