Data concerning Lemelin Corporation's single product appear below: Per UnitPercent of SalesSelling price$230 100%Variable expenses 115 50%Contribution margin$115 50%The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month.The marketing manager believes that an $11,000 increase in the monthly advertising budget would result in a 100 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 $11,500
B. increase of $500
C. decrease of $500
D. decrease of $11,000
Answer: B
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