Kuzio Corporation produces and sells a single product. Data concerning that product appear below:  Per UnitPercent of SalesSelling price$130  100%Variable expenses 78  60%Contribution margin$52  40% The company is currently selling 6,000 units per month. Fixed expenses are $263,000 per month. The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

A. increase of $7,280
B. increase of $2,280
C. decrease of $5,000
D. decrease of $2,280


Answer: B

Business

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