Data concerning Sotero Corporation's single product appear below:                                      Per Unit      Percent of Sales       Selling price               $140            100%       Variable expenses         56              40%       Contribution margin     $84              60%    The company is currently selling 5,000 units per month. Fixed expenses are $319,000 per month. The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in an 1,800 unit increase in annual sales. What should be the overall effect on the company's annual net operating income of this change?     a.  decrease of $3,120   b.  decrease of $7,200   c.  increase of $3,120   d.  increase of $139,200   e.  decrease of $12,000   f.  increase of $15,120   g.  increase of $7,200

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Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.