Business, 07.10.2019 16:10, issagirl23

The company is currently selling 5,000 units per month. fixed expenses are $243,000 per month. the marketing manager believes that an $11,000 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?

per unit price percent of sales
selling prices $150 100%
variable exp 90 60%
cont margin 60 40%

(a) increase of $200
(b) decrease of $200
(c) increase of $10,800
(d) decrease of $11,000

Answers: 3

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The company is currently selling 5,000 units per month. fixed expenses are $243,000 per month. the m...