Question: Data concerning Runnells Corporation's single and sells a product. Data concerning that product appear below: Per Unit Percent of Sales Selling price..........................$150.....................100% Variable expenses.......................75.....................50% Contribution

Data concerning Runnells Corporation's single and sells a product. Data concerning that product appear below:
Per Unit Percent of Sales
Selling price..........................$150.....................100%
Variable expenses.......................75.....................50%
..................$ 75.....................50%
The company is currently selling 4,800 units per month. Fixed expenses are $302,600 per month. The marketing manager believes that a $7,200 increase in the monthly advertising budget would result in a 210 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Decrease of $7,200
Increase of $15,750
Decrease of $8,550
Increase of $8,550

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