Help Save & Exit 7 A company makes a product that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $200,000 per year. Its operating results for last year were as follows: Sales $3,000,000 Variable expenses 1,500,000 Contribution margin 1,500,000 Fixed expenses 200,000 Net operating income $1,300,000 The company president wants to add new features to the product, which will increase the variable expenses by $1.60 per unit. She thinks that the new features, combined with some increase in marketing spending, would increase this year's sales by 25%. How much could the president increase this year's fixed marketing expense and still earn the same $1,300,000 net operating income as last year? Multiple Choice $487,500 Multiple Choice $487,500 $325,000 $585,000 $260,000