Data concerning the single product that some company sells appear below:

	Per Unit				Percent of Sales
Selling price	$	120				100	%
Variable expenses		84				70	%
Contribution margin		36				30	%

Current monthly sales are 5,200 units. Fixed expenses are $150,000 per month. The people in the sales department have argued that if the monthly advertising budget is increased by $6,000 then monthly sales will increase by 200 units. You have been asked to determine the overall effect on the company's monthly net operating income if the sales department suggestion is carried out. Which of the following do you determine?

rev: 08_18_2016_QC_CS-57562

increase of $1,200

decrease of $6,000

increase of $7,200

decrease of $1,200