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

Multiple Choice

Data concerning Massing Corporation's single product appear below: The company is currently selling 9, 000 units per month.Fixed expenses are $837, 000 per month.The marketing manager believes that a $16, 000 increase in the monthly advertising budget would result in a 150 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 $1, 250
B) decrease of $16, 000
C) decrease of $1, 250
D) increase of $17, 250