. Finestra Corporation produces a single product that it currently sells for $10. Fixed expenses are $120,000 for the year and variable expenses are $6 per unit. In addition, Finestra's salespersons are paid a commission of 10% of their sales.
If Finestra spends an additional $10,000 on advertising, increases its selling price to $12 per unit, and sells 60,000 units, its net operating income would be:
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