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

	Per Unit			Percent of Sales
Selling price	$	140			100	%
Variable expenses		56			40	%
Contribution margin	$	84			60	%

Fixed expenses are $275,000 per month. The company is currently selling 4,000 units per month.

Required:

1. Compute the break even point for Shelhorse Corporation.

2. The marketing manager believes that a $13,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

* * * Please organize your answer in schedule ****

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