A partial listing of costs incurred at Gilhooly Corporation during September appears below:

Direct materials	$	177,000
Utilities, factory	$	26,000
Administrative salaries	$	119,000
Indirect labor	$	45,000
Sales commissions	$	74,000
Depreciation of production equipment	$	66,000
Depreciation of administrative equipment	$	50,000
Direct labor	$	134,000
Advertising	$	81,000

The total of the product costs listed above for September is:

$137,000

$448,000

$772,000

$324,000

Calip Corporation, a merchandising company, reported the following results for October:

Sales	$	424,800
Cost of goods sold (all variable)	$	180,100
Total variable selling expense	$	18,200
Total fixed selling expense	$	15,300
Total variable administrative expense	$	8,700
Total fixed administrative expense	$	31,200

The gross margin for October is:

$378,300

$217,800

$244,700

$171,300

Brees Inc., a company that produces and sells a single product, has provided its contribution format income statement for April.

Sales (7,500 units)	$	375,000
Variable expenses		225,000
Contribution margin		150,000
Fixed expenses		103,500
Net operating income	$	46,500

If the company sells 7,400 units, its total contribution margin should be closest to:

$45,979

$148,000

$46,500

$42,000

The records of the Dodge Corporation show the following results for the most recent year:

Sales (16,800 units)	$	336,000
Variable expenses		201,600
Net operating income		33,600

Given these data, the unit contribution margin was:

$20

$6

$2

$8

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

	Per Unit				Percent of Sales
Selling price	$	120				100	%
Variable expenses		84				70	%
Contribution margin		36				30	%

The company is currently selling 6,500 units per month. Fixed expenses are $190,000 per month. The marketing manager believes that a $6,400 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

rev: 08_18_2016_QC_CS-57562

increase of $1,160

decrease of $6,400

increase of $7,560

decrease of $1,160