Question: J. Data concerning Cavaluzzi Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 110 100% Variable expenses 44 40% Contribution margin

J. Data concerning Cavaluzzi Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 110 100% Variable expenses 44 40% Contribution margin $ 66 60% Fixed expenses are $440,000 per month. The company is currently selling 8,000 units per month. REQUIRED: The marketing manager believes that an $8,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

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