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Muzzillo Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. Required:
a.If the selling price increases by $4 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income?
b.If the variable cost per unit increases by $6, spending on advertising increases by $3,000, and unit sales increase by 1,800 units, what would be the estimated net operating income?
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