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How much net operating income would increase

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Paula Inc.'s single product has a selling price of $15 per unit. Last year the company reported total variable expenses of $180,000, fixed expenses of $90,000, and a net operating income of $30,000. A study by the sales manager discloses that a 15% increase in the selling price would reduce unit sales by 10%. If her proposal is adopted, how much net operating income would increase?

Reference no: EM13525347

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