Question: Data concerning Homme Corporation's single product appear below Per Unit $ 300 180 $ 120 Percent of Sales Selling price Varlable expenses Contribution margln 60%

Data concerning Homme Corporation's single product appear below Per Unit $ 300 180 $ 120 Percent of Sales Selling price Varlable expenses Contribution margln 60% 40% The company is currently selling 3100 units per month. Fixed expenses are $141,000 per month. The marketing manager would like to cut the selling prnce by $20 and increase the advertising budget by $13,500 per month. The marketing manager predicts that these two changes would Increase monthly sales by 700 units. What should be the overall efflect on the company's monthly net operating income of this change? O decrease of $229,900 O decrease of $5,500 O increase of $248,100 O increase of $358,500

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