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Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 125 100 %

Dybala Corporation produces and sells a single product. Data concerning that product appear below:

Per Unit Percent of Sales
Selling price $ 125 100 %
Variable expenses 75 60 %
Contribution margin 50 40 %

The company is currently selling 5,320 units per month. Fixed expenses are $240,000 per month. The marketing manager believes that a $7,600 increase in the monthly advertising budget would result in a 330 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

a) increase of $8,9000

b) decrease of $7,600

c) increase of $16.500

d) decrease of $8,900

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