Zeeb corporation produces and sells

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Reference no: EM13952008

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? (Input the amount as positive value.)

Change in net operating income

Reference no: EM13952008

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