Data concerning Dorazio Corporation's single product appear below: Selling price Variable expenses Contribution margin Multiple Choice Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change? Increase of $5,600 Per Unit $ 160 48 $ 112 increase of $33,600 Percent of Sales 100% 30% 70%

Data concerning Dorazio Corporation's single product appeat below: Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $5,600 increase of $33,600 increase of $5,600 increase of $33,600 decrease of $5,600 decrease of $33,600