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Business, 07.05.2020 14:01 dacey4164

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

1.selling price per unit- $180 = 100% of sales

2.Variable expenses - 90 = 50% of sales

3.contribution margin- $90 = 50% of sales

The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 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 $2,700

B. increase of $15,300

C. decrease of $18,000

D. decrease of $2,700

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