Data Concerning Hogarth Corporation's Single Product Appear Below

Essay

Data concerning Hogarth Corporation's single product appear below:
Fixed expenses are $96,000 per month. The company is currently selling 1,000 units per month.
Required:
The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 110 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Show your work!