Question
Dybala Corporation's produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $140 100% Variable expenses
Dybala Corporation's produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $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?
Decrease of $6,700
Decrease of $1,700
Increase of $8,400
Increase of $1,700
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