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Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit

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Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Percent of Per Unit Sales $ 270 108 100% 40% $ 162 60% Fixed expenses are $367,000 per month. The company is currently selling 6,200 units per month. Required: The marketing manager believes that a $24,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income

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