Dybala Corporation produces and sells a single product. Data concerning that product appear below:

	Per Unit				Percent of Sales
Selling price	$	115				100	%
Variable expenses		92				80	%
Contribution margin		23				20	%

The company is currently selling 5,600 units per month. Fixed expenses are $100,000 per month. The marketing manager believes that a $6,500 increase in the monthly advertising budget would result in a 350 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

rev: 08_18_2016_QC_CS-57562

increase of $1,550

decrease of $6,500

increase of $8,050

decrease of $1,550