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

Selling Price $150.00 100%
Variable Expenses 60 40%
Contribution Margin 90 60%

The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should the overall effect on the company monthly net operating income of this change?

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  • Reference No.:- M947516

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