Data Concerning Lantieri Corporation's Single Product Appear Below: Fixed

question 229

Essay

Data concerning Lantieri Corporation's single product appear below: Fixed expenses are $162,000 per month.The company is currently selling 3,000 units per month.
Required:
The marketing manager believes that a $10,000 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? Show your work!

---

Definitions:

Trousseau's Sign

A clinical sign where inflation of a blood pressure cuff on the arm causes a carpal spasm, indicating hypocalcemia.

Postural Blood Pressure

A measurement of blood pressure after changing body positions, used to assess for conditions like orthostatic hypotension.

Adventitious Lung Sounds

Abnormal lung sounds heard with a stethoscope, indicating respiratory problems such as infections, fluid, or air in the lungs.

Orthopnea

Difficulty in breathing that occurs when lying down and is relieved upon changing to an upright position.