Use the following information for this question: per unit ratio Sales Revenue $180 Variable Costs 20% Contribution Margin Fixed expenses are $715,968 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently. The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 230-unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Make sure you indicate if increase (positive number) or decrease (negative number). I am only looking for the impact of the advertising campaign.

Use the following information for this question: per unit ratio Sales Revenue $180 Variable Costs 20% Contribution Margin Fixed expenses are $715,968 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently. The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 230-unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Make sure you indicate if increase (positive number) or decrease (negative number). I am only looking for the impact of the advertising campaign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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