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The marketing manager believes that a 7200 increase in the

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Data concerning Runnells Corporation's single and sells a product. Data co cerning that product appear below:


 Per Unit Percent of Sales
  Selling price $150    100%    
  Variable expenses

75   

50%    
  Contribution margin

$ 75   

50%    

The company is currently selling 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Reference no: EM13585412

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