Question
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 130 100 %
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 130 100 % Variable expenses 65 50 % Contribution margin $ 65 50 % The company is currently selling 4,900 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Multiple Choice
increase of $4,350
increase of $11,050
decrease of $6,700
decrease of $4,350
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