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Percent of Sales 100% 60% Per Unit $ 85 Selling price Variable expenses 51 Contribution margin $ 34 40% Fixed expenses are $77,000 per month
Percent of Sales 100% 60% Per Unit $ 85 Selling price Variable expenses 51 Contribution margin $ 34 40% Fixed expenses are $77,000 per month and the company is selling 2,600 units per month. 3 value: 10.00 points Required 1-a. The marketing manager argues that a $8,200 increase in the monthly advertising budget would increase monthly sales by $16,000. Calculate the increase or decrease in net operating income Net operating income by 1-b. Should the advertising budget be increased? Yes No
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