Data concerning Pellegren Corporation's single product appear below: Per Unit Percent of Sales $ 200 100 % Selling price Variable expenses Contribution margin 40 20 % $ 160 80 % Fixed expenses are $531,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $14 and increase the advertising budget by $35,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? A) decrease of $18,000 B) increase of $38,000 C) decrease of $38,000 D) increase of $58,000 Data concerning Bazin Corporation's single product appear below: Per Unit Percent of Sales $ 100 100 % Selling price Variable expenses Contribution margin 20 20 % $ 80 80 % Fixed expenses are $384,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $9 per unit. In exchange, the sales staff would accept a decrease in their salaries of $46,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? A) increase of $27,500 B) decrease of $64,500 C) increase of $41,500 D) increase of $507,500