Data Concerning Kardas Corporation's Single Product Appear Below: the Company

Data concerning Kardas Corporation's single product appear below: The company is currently selling 8,000 units per month.Fixed expenses are $719,000 per month.The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change?

A) decrease of $160
B) increase of $20,160
C) decrease of $20,000
D) increase of $160

Correct Answer:

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