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:
Point Method
A technique used in job evaluation to quantify the value of a job's aspects or components, assigning points based on complexity, skills required, and responsibilities.
Expectancy Theory
A motivation theory suggesting that an individual's willingness to work is based on the expectation that their efforts will lead to desired performance and rewards.
Instrumentality Theory
A concept in motivation theory that suggests the perceived relationship between performance and outcomes affects motivation.
Valued Reward
A tangible or intangible benefit given in recognition of achievement, performance, or service deemed desirable by the recipient.
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