Data concerning Pellegren Corporation's single product appear below:

	Per Unit	Percent of Sales
Selling price	$	200			100	%
Variable expenses		40			20	%
Contribution margin	$	160			80	%

Fixed expenses are $531,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $14 and increase the advertising budget by $35,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change?

Group of answer choices

decrease of $18,000

increase of $58,000

decrease of $38,000

increase of $38,000