What should be overall effect on company monthly net income

Assignment Help Accounting Basics

Reference no: EM132085553

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

selling price per unit- $180 = 100% of sales

Variable expenses - 90 = 50% of sales

contribution margin- $90 = 50% of sales

The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Reference no: EM132085553

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