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Rogers Company prepared the following preliminary budget assuming no advertising expenditures: Selling price $15 per...

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Accounting

Rogers Company prepared the following preliminary budget assuming no advertising expenditures: Selling price $15 per unit Unit sales 105,000 Variable expenses $630,000 Fixed expenses $200,000 Based on a market study, the company estimated that it could increase the unit selling price by 10% and increase the unit sales volume by 5% if $125,000 were spent on advertising. Assuming that these changes are incorporated in its budget, what should be the budgeted net operating income?

The answer is $832,625 but can you show me all the steps to get to this solution?

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