Multiple Choice

decrease of $1,800

increase of $1,800

increase of $7,200

decrease of $5,400

Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Percent of Selling price Variable expenses Contribution margin Per Unit $150 90 $ 60 Sales 100% 60% 40% The company is currently selling 6,500 units per month. Fixed expenses are $193,000 per month. The marketing manager believes that a $5,400 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change