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The company has provided the following cost, price, and sales data: Per Unit 222 45 Selling price $ Variable expenses Contribution $ margin 177 The
The company has provided the following cost, price, and sales data: Per Unit 222 45 Selling price $ Variable expenses Contribution $ margin 177 The I company is currently selling 6,200 units per month. Fixed expenses are $898,000 per month. The marketing manager would like to cut the selling price by $19 and increase advertising spending by $33,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 18%. What would be the overall effect on the company's monthly net operating income of this change? (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income)
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