The marketing manager believes that a 30000 increase in the

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Reference no: EM13483654

Zeeb Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit			Percent of Sales
Selling price		$	600		100	%
Variable expenses			240		40	%

Contribution margin		$	360		60	%

Fixed expenses are $430,000 per month. The company is currently selling 20,000 units per month.

Required:

The marketing manager believes that a $30,000 increase in the monthly advertising budget would result in a 310 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Reference no: EM13483654

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