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Houpe Corporation produces and sells a single product. Data concerning that product appear below. Percent of Selling price Variable expenses Contribution margin Per Unit

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Houpe Corporation produces and sells a single product. Data concerning that product appear below. Percent of Selling price Variable expenses Contribution margin Per Unit Sales) $ 140 100% 42 30% $ 98 70% Fixed expenses are $490,000 per month. The company is currently selling 6.000 units per month The marketing manager beleves that a $14,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

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