Tapp Corporation produces and sells a single product. Data concerning that product appear below: 
Fixed expenses are $226,000 per month. The company is currently selling 2,000 units per month.
Required:
The marketing manager would like to cut the selling price by $12 and increase the advertising budget by $13,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work!
Definitions:
Realistic Group Conflict
The theory that group conflicts arise from actual competition for resources or conflicting goals between groups.
Resource-Rich Land
Refers to areas abundant in natural resources which can be utilized for economic gain, such as minerals, forests, and water.
Intergroup Conflict
A situation where members of different groups experience friction, competition, or disagreement, often resulting in tension and conflict.
Social Identity Theory
A psychological theory that explains how individuals categorize themselves and others into groups, which affects their self-esteem and behaviors.
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