Question: Data for Fatima Corporation are shown below: Total Per unit Sales $427,500 95 Variable expenses $238,500 53 Contribution margin $189.000 Fixed expenses are $307,000 per

Data for Fatima Corporation are shown below: Total Per unit Sales $427,500 95 Variable expenses $238,500 53 Contribution margin $189.000 Fixed expenses are $307,000 per month. The company is currently selling 4,500 units per month Required: Management is considering using a new component that would increase the unit variable cost by $2. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 9% What should be the overall effect on the company's monthly net operating income of this change of variable expenses per unit? If there is a decrease put a minus sign next to the number

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