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Dybala Corporation's produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $150 100% Variable expenses

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

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

90

60%

Contribution margin

$ 60

40%

The company is currently selling 7,000 units per month. Fixed expenses are $363,900 per month. The marketing manager believes that a $7,400 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Increase of $12,000

Decrease of $7,400

Increase of $4,600

Decrease of $4,600

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