Match the correct term to each question. Greater Fixed Costs result in _____________ operating leverage. Greater fixed costs will result in a ___________ impact from any given change in sales. Greater fixed cost means a ___________ break-even point. Greater fixed costs means a _______ safety margin. A. greater B. lower

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

The company is currently selling 2,000 units per month at $180. Variable costs per unit are $90. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales.

What should be the overall effect in dollars on the company's monthly net operating income of this change? State increases positive and decreases as negative.

Cindy, Inc. sells a product for $10 per unit. The variable expenses are $6 per unit, and the fixed expenses total $35,000 per period. By what dollar amount will net operating income change if sales are expected to increase by $40,000? State your answer as positive for increase and negative for decrease.