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10. Zeeb Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 180 100%
10.
Zeeb Corporation produces and sells a single product. Data concerning that product appear below: |
Per Unit | Percent of Sales | ||
Selling price | $ | 180 | 100% |
Variable expenses | 54 | 30% | |
Contribution margin | $ | 126 | 70% |
Fixed expenses are $344,000 per month. The company is currently selling 3,900 units per month. |
The marketing manager believes that a $13,000 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. |
Required: |
What should be the overall effect on the company's monthly net operating income of this change?(Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) |
Change in net operating income Please show owrk, Thanks | $ ________ |
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