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The BZ-60728 company charges a price of $228 per unit of its product. The company's variable cost per unit is $48. The BZ-60728 company
The BZ-60728 company charges a price of $228 per unit of its product. The company's variable cost per unit is $48. The BZ-60728 company on average sells 6,800 units per month. Fixed expenses are $892,000 per month. The company considers cutting the selling price by $22 and increasing its advertising budget by $42,000 per month. The company predicts monthly sales quantity to increase by 22%. What is the overall effect on the BZ-60728 company's monthly net operating income of these changes? (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Multiple Choice -6,920 dollars -25,544 dollars 6,720 dollars 44,768 dollars
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