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

per unit percent of Sales

Selling price $230 100%

variable expenses 69 30%

Contribution margin $161 %70

Fixed expenses are $628,000 per month. The company is currently selling 5,000 units per month.

1- The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $45,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? Should the changes be made?Why or why not?Show all your computations!