selling price per unit 160

variable expense per unit 96

contribution margin 64

Fixed expenses are 375,000 per month. The company is currently selling 8,000 units per month. The marketing manager would like to cut the selling price by 15 and increase the advertising budget by 23,000 per month. the marketing manager predicts that these two changes would increase monthly sales by 3,100 units. What should be the overall effect on the company's monthly net operating income of this change?