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Dybala Corporation Produces and Sells a Single Product

Question 127

Multiple Choice

Dybala Corporation produces and sells a single product. Data concerning that product appear below: Dybala Corporation produces and sells a single product. Data concerning that product appear below:   The company is currently selling 5,000 units per month. Fixed expenses are $173,000 per month. The marketing manager believes that a $6,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A) increase of $1,480 B) decrease of $6,000 C) increase of $7,480 D) decrease of $1,480 The company is currently selling 5,000 units per month. Fixed expenses are $173,000 per month. The marketing manager believes that a $6,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?


A) increase of $1,480
B) decrease of $6,000
C) increase of $7,480
D) decrease of $1,480

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