Data for Herron Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100% Variable expenses 42 60% Contribution margin $ 28 40% Fixed expenses are $75,300 per month and the company is selling 4,000 units per month. (Input the amount as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

The marketing manager believes that an $8,000 increase in the monthly advertising budget would increase monthly sales by $16,100. Calculate the increase or decrease in net operating income.

Question

Data for Herron Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100% Variable expenses 42 60% Contribution margin $ 28 40% Fixed expenses are $75,300 per month and the company is selling 4,000 units per month. (Input the amount as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

The marketing manager believes that an $8,000 increase in the monthly advertising budget would increase monthly sales by $16,100. Calculate the increase or decrease in net operating income.

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Data for Herron Corporation are shown below: Per Unit Percent of Sales Selling price $ 70 100% Variable expenses 42 60% Contribution margin $ 28

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