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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