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The BZ-89886 company charges a price of $232 per unit of its product. The company's variable cost per unit is $50. The BZ-89886 company on

The BZ-89886 company charges a price of $232 per unit of its product. The company's variable cost per unit is $50. The BZ-89886 company on average sells 7,200 units per month. Fixed expenses are $888,000 per month.

The company considers cutting the selling price by $24 and increasing its advertising budget by $48,000 per month. The company predicts monthly sales quantity to increase by 20%. What is the overall effect on the BZ-89886 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

6,720 dollars

-25,544 dollars

-11,440 dollars

3,528 dollars

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