Data concerning lemelin corporation's single product appear below: per unit percent of sales selling price $ 230 100 % variable expenses 115 50 % contribution margin $ 115 50 % the company is currently selling 7,000 units per month. fixed expenses are $581,000 per month. the marketing manager believes that an $11,000 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

On february 10, 2014, after issuance of its financial statements for 2013, higgins company entered into a financing agreement with cleveland bank, allowing higgins company to borrow up to $6,000,000 at any time through 2016. amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. higgins company presently has $2,250,000 of notes payable with star national bank maturing march 15, 2014. the company intends to borrow $3,750,000 under the agreement with cleveland and liquidate the notes payable to star national bank. the agreement with cleveland also requires higgins to maintain a working capital level of $9,000,000 and prohibits the payment of dividends on common stock without prior approval by cleveland bank. from the above information only, the total short-term debt of higgins company as of the december 31, 2013 balance sheet date is