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: Refer to the original data. The vice-president in charge of sales is certain that a 10% reduction in price in combination with a $30,000 increase in advertising will cause unit sales to increase by 50%. What effect would this strategy have on net income (loss)?