Question: A sales manager has projected that an increase in the monthly advertising budget for $25,000 will increase monthly sales from 10,000 units to 12,000 units.

A sales manager has projected that an increase in the monthly advertising budget for $25,000 will increase monthly sales from 10,000 units to 12,000 units. Each unit sells for $50 with total variable costs per unit of $40. Fixed monthly expenses, including current advertising costs of $5,000, total $20,000.

What will be the expected impact on net income?

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