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The EV69194 company has provided the following cost, price, and sales data: Per Unit Selling price $ 242 Variable expenses 55 Contribution margin $ 187

The EV69194 company has provided the following cost, price, and sales data:

Per Unit
Selling price $ 242
Variable expenses 55
Contribution margin $ 187

The EV69194 company is currently selling 8,200 units per month. Fixed expenses are $878,000 per month.

The marketing manager would like to cut the selling price by $29 and increase advertising spending by $63,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 22%. What would be the overall effect on the EV69194 company's monthly net operating income of this change?

Multiple Choice

  • 63,520 dollars

  • -15,768 dollars

  • -63,840 dollars

  • 13,800 dollars

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