Data concerning Milian Corporation's single product appear below:

Fixed expenses are $$86,000$ per month. The company is currently selling $1,250$ units per month.

Required:

Management is considering using a new component that would increase the unit variable cost by $$20.$ Since the new component

would improve the company's product, the marketing manager predicts that monthly sales would increase by $300$ units. What should

be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected?

Change in net operating income