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Calderon Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 200 100% Variable

Calderon Corporation produces and sells a single product. Data concerning that product appear below:

Per Unit Percent of Sales
Selling price $ 200 100%
Variable expenses 42 21%
Contribution margin $ 158 79%

Fixed expenses are $120,000 per month. The company is currently selling 1,100 units per month.

Management is considering using a new component that would increase the unit variable cost by $40. Since the new component would improve the company's product, the marketing manager predicts that monthly sales would increase by 300 units.

Required:

What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

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