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Business, 17.03.2020 02:22 mayaparness

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

Per Unit Percent of Sales
Selling price $ 150 100 %
Variable expenses 90 60 %
Contribution margin $ 60 40 %

The company is currently selling 7,100 units per month. Fixed expenses are $199,000 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 110 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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