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Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 460 100.00

Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:

Per Unit Percent
Sales price $ 460 100.00
Variable costs 237 51.52
Unit contribution margin $ 223 48.48

Assume that Staley Co. is currently selling 590 computer monitors per month and monthly fixed costs are $79,800. If an $16,200 increase in the advertising budget would increase monthly sales by $59,700, the new level of operating income (B) for Staley Co. would be: (Do not round intermediate calculations.)

Multiple Choice

  • $62,512.

  • $64,512.

  • $61,512.

  • $65,512.

  • $60,512.

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