Question: Please provide all calculations for this problem: Per Unit Percent of Sales Selling price $120 100% Variable cost 72 60% Contribution margin $48 40% The

Please provide all calculations for this problem:

Per Unit Percent of Sales

Selling price $120 100%

Variable cost 72 60%

Contribution margin $48 40%

The company is currently selling 4,000 units per month. Fixed expenses are $166,000 per month. The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $11,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units.

Based on this what if, calculate the change, if any, to operating income.

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