Question
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
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? A. Decrease of $7,200 B.Increase of $7,200 C. Increase of $14,400
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