Data concerning Kardas Corporation's single product appear below:

	Per Unit			Percent of Sales
Selling price	$	140			100	%
Variable expenses		28			20	%
Contribution margin	$	112			80	%

The company is currently selling 8,000 units per month. Fixed expenses are $719,000 per month. The marketing manager believes that a $20,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Multiple Choice

• decrease of $20,000

• increase of $160

• increase of $20,160

• decrease of $160