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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....

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