The sales manager is convinced that a 10% reduction in selling price, combined with an increase of $31,000 in a monthly advertising budget, will double unit sales. If the sales manager is right, what will the revised net operating income (loss)?

Sales (12,600 units $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $ 252,000 126,000 126,000 141,000 (15,000)