7. Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$180	100%
Variable expenses	90	50%
Contribution margin	$ 90	50%

The company is currently selling 5,300 units per month. Fixed expenses are $420,100 per month. The marketing manager believes that a $6,300 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?

17. A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	3.90	machine-hours
Standard variable overhead rate	$11.25	per machine-hour

The following data pertain to operations for the last month:

Actual hours	8,800	machine-hours
Actual total variable manufacturing overhead cost	$95,850
Actual output	2,200	units

What is the variable overhead efficiency variance for the month?