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Kuzio Corporation produces and sells a single product. Data concerning that product appear below: ...

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Accounting

Kuzio Corporation produces and sells a single product. Data concerning that product appear below:
Per Unit Percent of Sales
Selling price $ 140100%
Variable expenses 7050%
Contribution margin $ 7050%
The company is currently selling 5,500 units per month. Fixed expenses are $218,000 per month. The marketing manager believes that a $5,900 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?

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