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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 margin $115 50%

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?

A) decrease of $1,250

B) decrease of $16,000

C) increase of $1,250

D) increase of $17,250

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