Due to the sluggish economy, the Wheels Company has experienced some difficulty in selling its bicycles. The following data relate to the current year:

Sales 9,000 units x $100@ $900,000 less: variable costs 9,000 units x $60@ $540,000 contribution margin $360,000 less: fixed costs $400,000 net loss $40,000

Question: The manager believes that a $40,000 increase in advertising would result in a $120,000 increase in annual sales. If the manager is right, what will be the effect on the company's net income or loss?