Derst Incorporated sells a particular textbook for $25. Variable expenses are $13 per book. At the current volume of 42,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total: Multiple Choice $546,000 $1,050,000 $504,000 $1,554,000 Bristo Corporation has sales of 1,600 units at $50 per unit. Variable expenses are 35% of the selling price. If total fixed expenses are $42,000, the degree of operating leverage is: Multiple Choice 2.80 2.97 5.20 8.00 Per Unit $ 150 Selling price Variable expenses Contribution margin Percent of Sales 100% 40% 60% 60 $ 90 The company is currently selling 7,000 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7,100 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice O increase of $17,100 increase of $10,000 decrease of $10,000