Question: Use the following information to answer this question: per unit ratio Sales Revenue $250 Variable Costs $75 30% Contribution Margin $175 70% Fixed expenses are
Use the following information to answer this question:
| per unit | ratio | |
| Sales Revenue | $250 | |
| Variable Costs | $75 | 30% |
| Contribution Margin | $175 | 70% |
Fixed expenses are $910,000 per month. The company is selling 7,000 units. The marketing manager believes that a $65,000 increase in the monthly advertising budget would result in an 8% increase in monthly sales. What is the change on the company's monthly net operating income of this change?
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