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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 $150 100%

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

Per Unit Percent of Sales
Selling price $150 100%
Variable expenses

75

50%

Contribution margin

$ 75

50%

The company is currently selling 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Decrease of $7,200
Increase of $15,750
Decrease of $8,550
Increase of $8,550

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