What-If- Decisions with Changing Fixed Costs LO2 Walker Company has current sales of $60,0000 and variable costs of $360,000. The company's fixed costs are equal to $200,000. The marketing manager is considering a new advertising campaign, which will increase fixed costs by $10,000. She anticipates that the campaign will cause sales to increase by 5 percent as a result. Should the company implement the new advertising campaign? What will be the impact on Walker's net operating income?