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Larita Corporation Produces and Sells a Single Product

question 60

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Larita Corporation produces and sells a single product. Data concerning that product appear below: Larita Corporation produces and sells a single product. Data concerning that product appear below:   Fixed expenses are $243,000 per month. The company is currently selling 2,000 units per month. Required: The marketing manager believes that a $28,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Show your work! Fixed expenses are $243,000 per month. The company is currently selling 2,000 units per month.
Required:
The marketing manager believes that a $28,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Show your work!


Definitions:

Customer Service

The help and service given by a business to its customers who purchase or utilize its goods or services.

Deadly Sins

In various contexts, refers to fundamental mistakes or taboo practices which are considered extremely detrimental to success or ethical conduct.

Business Selling

The process of selling products or services directly to other businesses, rather than individual consumers.

Lack of Pushiness

An approach in sales or negotiations where aggressiveness and hard-sell tactics are avoided, often leading to better customer relations.

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