Explain what would be the companys net operating income


Riven Corporation has a single product whose selling price is $12. At an expected sales level of $1,428,000, the company's variable expenses are $595,000 and its fixed expenses are $285,000. The marketing manager has recommended that the selling price be increased by 30%, with an expected decrease of only 9% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?

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Accounting Basics: Explain what would be the companys net operating income
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