Ullie Medical Supply is a retailer of home medical equipment. Last year, Ullie's sales revenues totaled $6,600,000. Total expenses were $2,300,000. Of this amount, approximately $1,320,000 were variable, while the remainder were fixed. Since Ullie's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units.

4.(PLEASE SOLVE THIS QUESTION) Ullie's top management is deciding whether to embark on a $180,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 18% as a result of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on the company's annual operating income?

What effect would this advertising campaign have on

Ullie's annual operating income?

The effect would be (INCREASE/DECREASE)

operating income of

.