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Per UnitPercent of Sales
Selling price$ 150100%
Variable expenses6040%
Contribution margin$ 9060%
Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month.
The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should be the overall effect on the company’s monthly net operating income of this change?