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  3. 22) houpe corporation produces and sells a single

22) Houpe Corporation produces and sells a single product. Data concerning that produc appear below:...

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22) Houpe Corporation produces and sells a single product. Data concerning that produc appear below: Percent of Sales Per Unit $ 140 Selling price Variable expenses Contribution margin 42 $ 98 100 % 30 % 70% Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $28,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? A) increase of $17,500 C) decrease of $17,500 B) increase of $38,500 D) decrease of $24,500

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