Accouting Question 11b
Data concerning Runnells Corporation’s single and sells a product. Data concerning that product appear below:
| Per Unit | Percent of Sales | |
| ;Selling price | $140 ; | 100% ; |
| ;Variable expenses |
70 ; OUR PROCESSOrderPaymentWritingDeliveryWhy Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality |
50% ; |
| ;Contribution margin |
$ 70 ; |
50% ; |
;
|
The company is currently selling 5,700 units per month. Fixed expenses are $342,500 per month. The marketing manager believes that a $6,700 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company’s monthly net operating income of this change? |
