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Percent of Sales 100 Selling price Variable expenses Contribution margin Per Unit $230 115 $115 508 508 The company is currently selling 7,000 units per
Percent of Sales 100 Selling price Variable expenses Contribution margin Per Unit $230 115 $115 508 508 The company is currently selling 7,000 units per month. Fxed expenses are $581,000 per month The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $37,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,600 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $118,200 increase of $302,200 decrease of $118,200 decrease of $7,800
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