Answer:
b. decrease of $8,900
Explanation:
the sales price and variable costs are missing, so I looked them up:
sales price = $160
variable costs = $48
current operating income:
sales revenue $800,000
variable costs <u>($240,000)</u>
contribution margin $560,000
fixed costs <u>($499,000)</u>
operating income $61,000
if the company follows the marketing manager's plan:
sales revenue $867,300
variable costs <u>($283,200)</u>
contribution margin $584,100
fixed costs <u>($532,000)</u>
operating income $52,100
operating income will decrease by $61,000 - $52,100 = $8,900
