Question: Data concerning Cavaluzzi Corporation's single product appear below: Per Unit $110 Percent of Sales 100% Selling price Variable expenses Contribution margin 40% 60% $ 66

Data concerning Cavaluzzi Corporation's single product appear below: Per Unit $110 Percent of Sales 100% Selling price Variable expenses Contribution margin 40% 60% $ 66 Fixed expenses are $440,000 per month. The company is currently selling 8,000 units per month. Required: The marketing manager believes that an $8,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change

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