Unit CM 20 per unit Additional sales 100 units Increase in NOI 2000 d Unit

Unit cm 20 per unit additional sales 100 units

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Problem 3Wrobbel Corporation produces and sells a single product. Data concerning that product appear below:Per UnitPercent of SalesSelling price$150100%Variable expenses9060%Contribution margin$6040%Fixed expenses are $307,000 per month. The company is currently selling 6,000 units per month.Required:Management is considering using a new component that would increase the unit variable cost by $2. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 200 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? Show your work!
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