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Data concerning Massing Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 230 100 % Variable expenses 115 50 % Contribution

Data concerning Massing Corporation's single product appear below:

Per Unit Percent of Sales
Selling price $ 230 100 %
Variable expenses 115 50 %
Contribution margin 115 50 %

The company is currently selling 9,000 units per month. Fixed expenses are $837,000 per month. The marketing manager believes that a $16,000 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?

increase of $17,250

increase of $1,250

decrease of $1,250

decrease of $16,000

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