(Answered) Question - dybala corporations produces and sells a single

Accounting

Question - Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

	Per Unit	Percent of Sales
Selling price	$160	100%
Variable expenses	80	50%
Contribution margin	$ 80	50%

The company is currently selling 6,200 units per month. Fixed expenses are $440,200 per month. The marketing manager believes that a $6,800 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Increase of $9,600

Decrease of $2,800

Decrease of $6,800

Increase of $2,800

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