Question: Per Unit Selling price $246 Variable expenses 57 Contribution margin $189 So a company is currently selling 8,600 units per month. Fixed expenses are $874,000

Per Unit

Selling price $246

Variable expenses 57

Contribution margin $189

So a company is currently selling 8,600 units per month. Fixed expenses are $874,000 per month.

and the marketing manager would like to cut the selling price by $31 and increase advertising spending by $69,000 per month. The marketing manager predicts that thesechanges would increase monthly sales quantity by 20%. What would be the overall effect on the company's monthly net operating income of this change?

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