Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales $ 130 100 % Selling price Variable expenses Contribution margin 78 60 % $ 52 40 % The company is currently selling 6,000 units per month. Fixed expenses are $263,000 per month. The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A) increase of $2,280 B) increase of $7,280 C) decrease of $5,000 D) decrease of $2,280 Data concerning Kardas Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 140 100 % Variable expenses 28 20 % Contribution margin $ 112 80 % The company is currently selling 8,000 units per month. Fixed expenses are $719,000 per month. The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? A) decrease of $160 B) increase of $20,160 C) decrease of $20,000 D) increase of $160 Derst Inc. sells a particular textbook for $140. Variable expenses are $25 per book. At the current volume of 6,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total: A) $400,000 B) $690,000 C) $840,000 D) $150,000