Question: Per Unit Selling price Variable expenses $ 140 42 Contribution margin $ 98 Percent of Sales 100% 30% 70% Fixed expenses are $490,000 per

Per Unit Selling price Variable expenses $ 140 42 Contribution margin $

Per Unit Selling price Variable expenses $ 140 42 Contribution margin $ 98 Percent of Sales 100% 30% 70% Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $28,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $17,500 increase of $17,500 decrease of $24,500 increase of $38,500

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