Question

As a result of a marketing study, the president believes that sales in the west division could be increased by 15% if monthly advertising in that division were increased by $25,000. calculate the incremental net operating income.

Answer 1

There is not enough information here to give an exact answer, but you can set up a formula.

N= number of units sold

Incremental net income is the amount of new sales minus the cost of getting those new sales

net income= .15n-25,000