Data related to Wythe Corporation's unique product appears below:

Per Unit Percentage of Sales Sales Price $150 100% Variable Expenses 90 60% Contribution Margin $60 40% Fixed Expenses are $106,000 per month. The company currently sells 2,000 units per month. The marketing manager would like to reduce the selling price by $15 and increase the advertising budget by $5,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect of this change on the company's monthly net operating income?

Answer rating: 100% (QA)

ANSWER Present net operating incom... View the full answer