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COVID 20 Co. produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 190 100%

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COVID 20 Co. produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 190 100% Variable costs 57 30% Contribution margin 33 133 70% Fixed costs are $226,000 per month. The company is currently selling 2,000 units per month. Required: (You have the option to upload the working) The marketing manager would like to cut the selling price by $12 and increase the advertising budget by $13,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 200 units. (A) What should be the overall effect on the company's monthly operating prot of these changes? (B) should the company adopt the proposal

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