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 ($240,000)
contribution margin $560,000
fixed costs ($499,000)
operating income $61,000
if the company follows the marketing manager's plan:
sales revenue $867,300
variable costs ($283,200)
contribution margin $584,100
fixed costs ($532,000)
operating income $52,100
operating income will decrease by $61,000 - $52,100 = $8,900
