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The Manufacturing Company has the following given data: Sales (20,000 units * AED 40 per unit).......... AED 800,000 Variable expenses (20,000 units x 20)......... Contribution

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The Manufacturing Company has the following given data: Sales (20,000 units * AED 40 per unit).......... AED 800,000 Variable expenses (20,000 units x 20)......... Contribution margin... 400,000 400,000 Fixed expenses .... ... 100,000 Net operating profit.... ...... AED 300,00 Required: a. The marketing manager believes that AED 10,000 increase in the monthly advertising budget would result in 2000 units increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Should this change be implemented

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