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

	Per Unit			Percent of Sales
Selling price	$	150			100	%
Variable expenses		75			50	%
Contribution margin	$	75			50	%

The company is currently selling 6,500 units per month. Fixed expenses are $184,000 per month. The marketing manager believes that a $7,800 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

rev: 03_09_2018_QC_CS-121313, 02_13_2019_QC_CS-158424

Multiple Choice

• increase of $6,450

• increase of $14,250

• decrease of $7,800

• decrease of $6,450