Question: Data concerning Marchman Corporation's single product appear below: Per Unit Percent of Sales Selling price $120 100% Variable expenses 72 60% Contribution margin $48 40%

Data concerning Marchman Corporation's single product appear below:

	Per Unit	Percent of Sales
Selling price	$120	100%
Variable expenses	72	60%
Contribution margin	$48	40%

The company is currently selling 4,000 units per month. Fixed expenses are $166,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Marchman Corporation. Refer to the original data when answering this question. The marketing manager believes that a $6,000 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

options

	decrease of $240
	decrease of $6,000
	increase of $240
	increase of $6,240

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