Per Unit Percent of Sales
Selling price $ 150 100%
Variable expenses 60 40%
Contribution margin $ 90 60%
Fixed expenses are $355,000 per month. The company is currently selling 5,000 units per month.
The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?