Laro Corporation produces and sells a single product with the following characteristics: . Selling price. Variable expenses......... Contribution margin....... Per Unit $150 75 $.775 Percent of Sales 100% 50% 50% The company is currently selling 5,000 units per month. Fixed expenses are $302,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Laro Corporation. Refer to the original data when answering this question. The marketing manager believes that a $7,000 increase in the monthly advertising budget would result in a 110 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? 'Increase of $1,250 Decrease of $7,000 Decrease of $1,250 Increase of $8,250