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Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below: Per Unit Percent of Sales Selling price $140 100%

Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below:

Per Unit Percent of Sales
Selling price $140 100%
Variable expenses

70

50%

Contribution margin

$ 70

50%

The company is currently selling 5,700 units per month. Fixed expenses are $342,500 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Increase of $1,700

Increase of $8,400

Decrease of $6,700

Decrease of $1,700

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