Ringstaff Corporation produces and sells a single product.Data concerning that product appear below: 
The company is currently selling 7,000 units per month.Fixed expenses are $615,000 per month.The marketing manager believes that a $21,000 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) increase of $600
B) decrease of $600
C) decrease of $21,000
D) increase of $21,600
Correct Answer:
Verified
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