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Business Accounting questions. Thank you for your help! Use the following information for questions 57-58: Bohlen Corporation produces and sells a single product. Data concerning

Business Accounting questions. Thank you for your help! image text in transcribed
Use the following information for questions 57-58: Bohlen Corporation produces and sells a single product. Data concerning that product appear below: Per Unit %of Sales Variable expenses....$36 Contribution margin S144 20% 80% Fixed expenses are $716,000 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently. 57) Refer to the original data when answering this question. The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A) increase of $25,920 B) decrease of $20,000 C) decrease of $5,920 D) increase of $5,920 58) Refer to the original data when answering this question. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? A) $145,400 B) $120,000 C) $860,000 D) $850,000

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