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Marathon Company makes and sells a single product. The current selling price is $$18$ per unit. Variable expenses are $$12$

per unit, and fixed expenses total $$36,000$ per month.

$($Unless otherwise stated, consider each requirement separately.$)$

f$.1.$ Calculate the monthly operating income $($or loss$)$ that would result from a $$1$ per unit price increase and a $$5,000$ per month

increase in advertising expenses, both relative to the original data. Assume a sales volume of $7,200$ units per month.

Is the increase in advertising expense justified by the price increase?

Complete this question by entering your answers in the tabs below.

Calculate the monthly operating income $($or loss$)$ that would result from a $$1$ per unit price increase and a $$5,000$ per month

increase in advertising expenses, both relative to the original data. Assume a sales volume of $7,200$ units per month.

Operating income