Required:
1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900 and monthly sales increase by $24,500?
1-b. Should the advertising budget be increased? (Yes/No)?
1. Net operating income = 24500 - 24500 * 68% - 9900 = ($2060)
Bet operating income decrease by $2060.
1b. No, budget should not be increased.
Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,900 and monthly sales increase by $24,500? 1-b. Should the advertising...
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