Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $33,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

Due to erratic sales of its sole product-a high-capacity battery for laptop computers PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales(13,400 units x$40 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $536,000 321,600 214,400 238,400 $(24,0e0)