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

Multiple Choice

Data concerning Lemelin Corporation's single product appear below: 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) decrease of $11,000
B) increase of $11,500
C) decrease of $500
D) increase of $500