Zeeb Corporation produces and sells a single product. Data concerning that product appear below:
|
|
Per Unit
|
Percent of Sales
|
|
Selling price
|
|
$
|
600
|
|
|
100
|
%
|
|
|
Variable expenses
|
|
|
240
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution margin
|
|
$
|
360
|
|
|
60
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed expenses are $430,000 per month. The company is currently selling 20,000 units per month.
Required:
The marketing manager believes that a $30,000 increase in the monthly advertising budget would result in a 310 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? (Input the amount as positive value.)
|
Change in net operating income
|
$
|