1. Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below: Per Unit Percent of Sales Selling price $160 100% Variable expenses 80 50% Contribution margin $ 80 50% The company is currently selling 6,800 units per month. Fixed expenses are $488,800 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

2. Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $31,000 and variable expenses of $8,440. Product V04P had sales of $52,000 and variable expenses of $39,700. The fixed expenses of the entire company were $35,530. The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) A.$83,000 B.$84,595 C.$35,530 D.$27,223