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:
\table[[,Percent of],[Selling price,Per Unit,Sales,],[Variable expenses,$140,100%,],[Contribution margin,84,60%,],[,,,]]
The company is currently selling 4,800 units per month. Fixed expenses are $209,000 per month. The marketing manager believes that a $7,400 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?
Multiple Choice
decrease of $7,400
decrease of $2,120
increase of $2,120
increase of $9,520
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