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Data Concerning Lemelin Corporation's Single Product Appear Below: the Company

question 18

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Data concerning Lemelin Corporation's single product appear below: Data concerning Lemelin Corporation's single product appear below:   The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month. The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $37,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,600 units. What should be the overall effect on the company's monthly net operating income of this change? A)  increase of $118,200 B)  increase of $302,200 C)  decrease of $118,200 D)  decrease of $7,800 The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month.
The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $37,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,600 units. What should be the overall effect on the company's monthly net operating income of this change?

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Definitions:

Proposal

A formal suggestion or plan put forward for consideration or discussion by others.

Introduction

The beginning part of a document or speech that gives an overview of what is to follow.

Investigations

Systematic inquiries or studies into something to discover more information or reach new understandings.

Recommendations

Advised or suggested courses of action put forward based on analysis or expertise.

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