q20

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$ $ S 20 A company produces a single product with the following data for the most recent month: Sales (units) 7,000 Selling price 230 Variable costs per unit 135 Monthly fixed expenses 581,000 Company management would like to increase sales without affecting net operating income. Marketing has forecasted that sales can be increased to 9,000 units next month if the commission paid to the sales staff is increased by S10 per unit and more is spent on advertising. By how much can the company increase its advertising costs next month without reducing net income if the additional commission is paid and marketing is able to reach its sales forecast? A. $ 100,000 B. $ 180,000 C. S 70,000 D. S 280,000 E None of the above is correct