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Management is considering using a new component that would increase the unit variable cost by P5. Since the new component would increase the features of

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Management is considering using a new component that would increase the unit variable cost by P5. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 300 units. The overall effect on the co's monthly net operating income of this change? O decrease of P2.100 O decrease of P27,900 increase of P27,900 O increase of P2.100 PreviousFaith Corporation produces and sells a single product. Data of that product appear below: Per Unit Percent of Sales Selling price P140 100% Variable expenses 42 30% Contribution margin P 98 70% Fixed expenses are P490,000 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently.The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of P11 per unit. In exchange, the sales staff would accept a decrease in their salaries of P58,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units, What should be the overall effect on the company's monthly net operating income of this change? O decrease of P115.300 increase of P588.700 increase of P700 increase of P56.900The marketing manager believes that a P14,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. The overall effect on the company's monthly net operating income of this change? O decrease of P14,000 increase of P14,700 decrease of P700 increase of P700

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