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Tomas the Tank Engine Company makes train engines for commercial trains. They have provided the following contribution format income statement ( for this problem just

Tomas the Tank Engine Company makes train engines for commercial trains. They have provided the following contribution format income statement (for this problem just assume that this information provided is within the relevant range.)image text in transcribed

Tomas the Tank Engine Company makes train engines for commercial trains. They have provided the following contribution format income statement (for this problem just assume that this information provided is within the relevant range.) Sales (1,000 units) $40,000 Variable expenses 30,000 Contribution margin 10,000 Fixed expenses 7,000 $3,000 Net operating income Tomas is considering a new advertising campaign. If they undertake this strategy, their variable cost per unit would increase by $1, spending on advertising would increase by $2,000, and unit sales would then increase by 50 units. Given this new scenario then the new net operating income would be closest to

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