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bottom choice is increase of 3000 Southern Corporation produces and sells a...

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Accounting

bottom choice is increase of 3000 image
Southern Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change? decrease of $3,000 decrease of $10.000 increase of $10,000

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