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zhuklara [117]
3 years ago
6

The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale

s staff, will result in an $84,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?
Business
1 answer:
nirvana33 [79]3 years ago
3 0

<u>Solution and Explanation:</u>

calculating the increase in the net operating income is as follows:

S.no                    Particulars and explanation                    Amount

1.                    Sales ( $268000 + 84000 )                         352000

2. Contribution ( 1 multiply with 40 percent)                      140000

3. Fied expense ( $119200 plus $6200 )                         125400

4. Net operating income ( 2 step minus 3 step)                $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

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