Required Knowledge Check 01 Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed expenses of $96,000. The company believes sales will increase by 300 units, if advertising incrases by $20,000. What is the change in net operating income after the changes? O Increase of $20,000 O Decrease of $20,000 O Increase of $14,200 O Decrease of $12,000 w O R