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Dybala Corporation's produces and sells a single product. Data concerning that product appear below: ...

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Accounting

Dybala Corporation's produces and sells a single product. Data concerning that product appear below:

Per Unit Percent of Sales
Selling price $160 100%
Variable expenses

80

50%

Contribution margin

$ 80

50%

The company is currently selling 5,200 units per month. Fixed expenses are $359,000 per month. The marketing manager believes that a $6,200 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Increase of $13,600

Decrease of $6,200

Increase of $7,400

Decrease of $7,400

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