Per Unit			Percent of Sales
Selling price	$	150			100	%
Variable expenses		90			60	%
Contribution margin	$	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?

rev: 03_09_2018_QC_CS-121313

Multiple Choice

• increase of $7,200

• decrease of $5,400

• decrease of $1,800

• increase of $1,800