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Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 250 100 %

Shelhorse Corporation produces and sells a single product. Data concerning that product appear below:

Per Unit Percent of Sales
Selling price $ 250 100 %
Variable expenses 100 40 %
Contribution margin $ 150 60 %

Fixed expenses are $353,000 per month. The company is currently selling 4,800 units per month.

Required:

The marketing manager believes that a $22,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

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