Kuzio Corporation Produces and Sells a Single Product

Multiple Choice

Kuzio Corporation produces and sells a single product.Data concerning that product appear below:
The company is currently selling 6,000 units per month.Fixed expenses are $263,000 per month.The marketing manager believes that a $5,000 increase in the monthly advertising budget would result in a 140 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 $2,280
B) increase of $7,280
C) decrease of $5,000
D) decrease of $2,280