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Question & Answer: Dybala Corporation's produces and sells a single product. Data concerning that product appear below: The company…..

Dybala Corporations produces and sells a single product. Data concerning that product appear below: Percent of Per Unit Sales Selling price Variable expenses Contribution margin $150 75 $75 100% 50% 50% The company is currently selling 5,600 units per month. Fixed expenses are $363,400 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. What should be the overall effect on the companys monthly net operating income of this change? O Increase of $3,150 O Decrease of $6,600 Decrease of $3,150 O Increase of $9,750

Dybala Corporation’s produces and sells a single product. Data concerning that product appear below: The company is currently selling 5, 600 units per month. Fixed expenses are $363, 400 per month. The marketing manager believes that a $6, 600 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. What should be the overall effect on the company’s monthly net operating income of this change? Increase of $3, 150 Decrease of $6, 600 Decrease of $3, 150 Increase of $9, 750

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