Question: Weinreich Corporation produces and sells a single product. Data concerning that product appear below:
selling price per unit- $180 = 100% of sales
Variable expenses - 90 = 50% of sales
contribution margin- $90 = 50% of sales
The company is currently selling 2,000 units per month. Fixed expenses are $131,000 per month. The marketing manager believes that an $18,000 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?