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13). At a volume of 3,000 units, Rudy Inc. reported the following: Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000 If instead, the company decides

13). At a volume of 3,000 units, Rudy Inc. reported the following:

Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000

If instead, the company decides to reduce the selling price by $100, AND increase advertising by $200,000 and expects sales to increase by 1,200 units, what would be the impact on net income in dollars? Note decreases with a negative number.

14). Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By what dollar amount will net operating income change if sales are expected to increase by $40,000? State your answer as negative for decrease.

15). Bali Corporation produces and sells a single product. Data concerning that product appear below:

The company is currently selling 2,000 units per month at $180. Variable costs per unit are $90. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales.

What should be the overall effect in dollars on the company's monthly net operating income of this change? State decreases as negative.

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