Question: 7. Roy Corporation's financial data is reported as follows: Per Percent of Unit Sales Selling price..... $140 100% Variable expenses. 28 20% Contribution margin $112

7. Roy Corporation's financial data is reported as follows: Per Percent

7. Roy Corporation's financial data is reported as follows: Per Percent of Unit Sales Selling price..... $140 100% Variable expenses. 28 20% Contribution margin $112 80% The monthly sales of Roy Corporation is 8.000 units. The company also incurres $719.000 fixed expenses per month. The CEO of the company asserts that a $20,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Show your calculations

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